FormFactor To Acquire Cascade Microtech In $352 Mln Cash, Stock Deal

(RTTNews) - Semiconductor company FormFactor Inc. (FORM) Thursday announced that it has entered into a definitive agreement to acquire Cascade Microtech, Inc. (CSCD) in a cash and stock transaction.

For each share of Cascade stock held, Cascade stockholders will be entitled to receive $16.00 in cash and 0.6534 of a share of FormFactor common stock, subject to the terms of the merger agreement.

The transaction values Cascade at $21.13 per share, or $352 million in equity value based on the closing price of FormFactor's stock on February 3, 2016, of $7.85.

This transaction is expected to be immediately accretive to FormFactor's earnings per share.

The 2015 revenues of the combined company on a pro forma basis would be over $426 million. The combined company expects to realize $10 million to $12 million in annualized cost synergies within 18 to 24 months of closing.