Nanometrics Announces Acquisition of 4D Technology Corporation
Dynamic Interferometry® business expands served markets and enables new process control technology solutions
MILPITAS, Calif., October 29, 2018 — Nanometrics Incorporated (NASDAQ: NANO), a leading provider of advanced process control systems, today announced that it is acquiring 4D Technology Corporation, a leading supplier of high-performance interferometric measurement and inspection systems located in Tucson, Arizona. 4D Technology’s Dynamic Interferometry® solutions are used in a variety of industries to provide accurate shape and surface measurements. This measurement data provides feedback to customers of optical surface shape and quality, machine finish, and surface defectivity, to improve manufacturing yield and performance. 4D Technology’s solutions are used primarily in the manufacture of advanced aerospace and industrial systems as well as for scientific research and semiconductor applications.
“4D Technology pioneered Dynamic Interferometry, which enables specialized applications for high-precision surface shape and profile. The addition of this business and technology to Nanometrics enables us to serve new markets in advanced process control metrology and inspection,” commented Dr. Pierre-Yves Lesaicherre, president and chief executive officer of Nanometrics. “In addition to expanding our served markets, 4D’s technology enables next-generation systems for leading semiconductor device applications and is a natural complement to our current optical metrology and inspection solutions.”
“4D is excited to be part of the Nanometrics team,” commented Dr. James Millerd, president of 4D Technology. “We have worked closely with Nanometrics for several years and believe that our technology will enable new applications for Nanometrics and continued adoption of the 4D technology. The maturity and scale of Nanometrics will enable 4D to drive into additional end markets, applications, and customers with our proprietary technology.” Dr. Millerd will continue with Nanometrics as the vice president and general manager of the 4D Technology business unit.
The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter. The purchase price of $40 million will be paid with $36 million of cash on hand and approximately $4 million of Nanometrics stock. 4D Technology’s current revenue run rate is in the range of $15 million to $20 million annually, with a similar profitability and margin model as Nanometrics.
Nanometrics is a leading provider of advanced, high-performance process control metrology and inspection systems used primarily in the fabrication of semiconductors and other solid-state devices, including sensors, optoelectronic devices, high-brightness LEDs, discretes and data storage components. Nanometrics’ automated and integrated metrology systems measure critical dimensions, device structures, topography and various thin film properties, including three-dimensional features and film thickness, as well as optical, electrical and material properties. The company’s process control solutions are deployed throughout the fabrication process, from front-end-of-line substrate manufacturing, to high-volume production of semiconductors and other devices, to advanced three-dimensional wafer-level packaging applications. Nanometrics’ systems enable advanced process control for device manufacturers, providing improved device yield at reduced manufacturing cycle time, supporting the accelerated product life cycles in the semiconductor and other advanced device markets. The company maintains its headquarters in Milpitas, California, with sales and service offices worldwide. Nanometrics is traded on NASDAQ Global Select Market under the symbol NANO. Nanometrics’ website is http://www.nanometrics.com.
About 4D Technology Corporation
4D Technology Corporation designs and builds optical instruments to measure surface, wave-front and polarization, enabling its customers to build next-generation optical instruments, improve manufacturing of industrial and consumer products, and increase fundamental scientific understanding. 4D Technology Corporation is a leader in innovative metrology products for measuring surface quality and surface defects on precision surfaces, as well as the surface and wave-front quality of optics. 4D’s patented Dynamic Interferometry® technology enables 4D’s interferometry products to measure in difficult environments, where vibration, air turbulence or rapid motion have traditionally prevented accurate measurement. The 4D products include Fizeau Interferometers, Optical Surface Profilers, Dynamic Laser Interferometers, Imaging Polarimeters and Snapshot Surface Gauges. 4D collaborates with customers and has developed technology for a wide variety of applications, including manufacturing and machining factory-floor inspection, high-precision optics for large-format telescope mirrors and systems, biomedical research, aerospace and defense for communications and satellites, environmental sensing and imaging and much more. With 57 employees, 4D Technology Corporation is headquartered in Tucson, Arizona, with a world-wide sales representation and distributor network.
Forward Looking Statements
The statements in this press release regarding the benefits that Nanometrics expects it will realize from its acquisition of 4D Technology Corporation are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those described in this release. Although Nanometrics believes that the expectations reflected in the forward-looking statements are reasonable, actual results could differ materially from these expectations due to a variety of factors, including, but not limited to: Nanometrics’ inability to integrate 4D Technology, ship products as scheduled or achieve customer acceptance of new products; shifts in the timing of customer orders and product shipments; and general economic conditions. In addition, the closing of the acquisition is subject to closing conditions which, if not met or waived, would cause the acquisition not to close. For additional information and considerations regarding the risks faced by Nanometrics that could cause actual results to differ materially, see its annual report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on February 26, 2018 including under the caption “Risk Factors,” as well as other periodic reports filed with the SEC from time to time. Nanometrics disclaims any obligation to update information contained in any forward-looking statement, except as required by law.