AURORA -- Cabot Microelectronics Corp. said it will acquire NexPlanar Corp. for approximately $142 million.
The Hillsboro, Oregon based company specializes in the development, manufacture and sale of advanced CMP pad solutions for the semiconductor industry. Under the agreement, Cabot Microelectronics will purchase 100 percent of the stock of NexPlanar, plus up to an additional $2.3 million depending upon treatment of certain unvested stock options held by NexPlanar security holders.
At closing, NexPlanar is expected to have approximately $15 million of cash and no debt. The company intends to fund the acquisition from its available cash balance.
Cabot said in a statement that the acquisition is part of its strategy to strengthen and grow its core CMP consumables business, and in particular, CMP pads. It expects NexPlanar's ElementTM thermoset polyurethane CMP pad technology will complement its own EpicTM thermoplastic polyurethane technology.
In addition to expanding its pad product portfolio, Cabot Microelectronics anticipates the acquisition will leverage the company's existing global sales and technology infrastructure, as well as its supply chain capabilities and quality systems.
"We are excited to combine NexPlanar with our CMP business, to enable us to deliver a broader range of world-class CMP pad solutions to the semiconductor industry," said Cabot Microelectronics President and CEO David Li. "Leveraging our extensive global infrastructure, we expect NexPlanar will enable us to accelerate growth in our CMP pads area, and more broadly, contribute to profitable growth for our company."
NexPlanar was established in 2003 and operates research and development, manufacturing and administrative functions there, and has approximately 100 employees.