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September 05, 2012

FormFactor Merges with MicroProbe

MicroProbe is a company named as the top supplier of advanced non-memory system-on-chip probe cards for 2011 by a top market research firm. To address semiconductor test requirements across the entire advanced probe card space, the company will now be acquired by FormFactor (News - Alert), another specialist in advanced wafer probe cards.

FormFactor signed a merger agreement with Astria Semiconductor Holdings, the parent company of MicroProbe. Under the terms of the merger agreement, FormFactor will acquire MicroProbe for $100 million in cash and $16.8 million in stock, subject to customary adjustments.

The merger is expected to close in the first half of FormFactor's fiscal quarter ending December 29, 2012.

"This merger is a transformational event for FormFactor and I look forward to working with Mike Slessor and the MicroProbe team to create the leading probe card company in the semiconductor industry," said Tom Dennis, chief executive officer at FormFactor.

"FormFactor and MicroProbe customers will benefit since the combined company will have the technology and resources to address semiconductor test requirements across the entire advanced probe card space," he added.

Headquartered in California, MicroProbe generated $87.3 million in revenue in its fiscal year ended December 31, 2011, growing 46 percent year-over-year and delivering a non-GAAP EBITDA margin of approximately 20 percent.

MicroProbe and its affiliated companies have approximately 360 employees worldwide.

After the merger, the combined company expects to realize numerous benefits. FormFactor aims to be the industry leading supplier to the high growth advanced SOC probe card market. The organization expects improved and immediately accretive financial performance beginning in the first quarter of 2013, and seeks technology leadership across the Memory and SOC advanced probe card markets.

"I'm very excited about the combination of MicroProbe and FormFactor," said Mike Slessor, chief executive officer at MicroProbe.

Carl Everett, chairman of the Board of FormFactor, said that together both entities will be in position to focus on delivering leading wafer probe solutions to meet the needs and roadmaps of logic and memory semiconductor device manufacturers.

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Edited by Braden Becker

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