Tegal Corporation, a leading
designer and manufacturer of plasma etch and deposition systems, today announced
that it has signed an agreement with Alcatel Micro Machining Systems (AMMS)
and Alcatel-Lucent to acquire their Deep Reactive Ion Etch (DRIE) and Plasma
Enhanced Chemical Vapor Deposition (PECVD) products, and the related intellectual
property, directed at advanced 3-dimensional wafer-level packaging applications.
The restricted stock and cash deal, valued at US$5 million, is expected to close
later this month. As part of the agreement, Gilbert Bellini, President of AMMS,
will be appointed to Tegal’s Board of Directors.
The agreement calls for the continued support by AMMS of the existing installed
base of DRIE tools in use by MEMS and integrated device manufacturers. Tegal
will continue the development of the AMMS DRIE product line, including the integration
of the AMMS process modules on its recently-introduced Compact™ bridge
platform and the completion of a 300mm process chamber. In addition, Tegal will
assume responsibility for AMMS’ joint development programs with key customers,
as well as research and academic institutions.
“This is an important strategic move for Tegal,” said Thomas Mika,
Chairman, President and CEO of Tegal. “These products, along with our
current etch and deposition technologies, will form the basis for a comprehensive
strategy to aggressively pursue a large, high growth market in MEMS and semiconductor
device manufacturing. With this transaction, we believe that we can offer customers
the best combination of leading-edge technology, customer support and proven
systems for production applications.”
“Tegal is well-known for providing advanced processes and production
tools to MEMS and semiconductor device manufacturers worldwide,” said
Gilbert Bellini, President of AMMS. “I am proud to be associated with
Tegal and pleased to work with the Company as a director to ensure the smooth
transition of the AMMS business to Tegal in the near-term and to help guide
Tegal into the rapidly expanding markets for 3D wafer level packaging applications.”
At closing, Tegal will pay to AMMS US$1 million in cash and US$ 4 million worth
of newly issued shares of Tegal common stock. The number of shares to be issued
will be equal to US$4,000,000 divided by the average of the closing sales prices
of Tegal common stock for the five (5) consecutive trading days immediately
prior to the closing date of the Acquisition. Completion of the transaction
is subject to customary closing conditions, but parties expect to close the
transaction on or about September 16, 2008.
Tegal’s senior management will conduct a conference call today at 5:00
p.m. EDT / 2:00 p.m. PDT to discuss the agreement between Tegal and AMMS. More
information about the conference call is provided below.