Onto Innovation Inc. (NYSE: ONTO) today announced that it has acquired Inspectrology, LLC. Headquartered in Sudbury, Massachusetts, USA, Inspectrology is a leading supplier of overlay metrology for controlling lithography and etch processes in the compound semiconductor market.
“This is a nice strategic fit for Onto Innovation’s portfolio of solutions for the high growth specialty and advanced packaging segment. We see revenue synergies by leveraging our broader access to global markets, especially in Asia, where Onto Innovation has built a broad infrastructure to support our leading position in inspection for this segment. In addition, we see revenue synergies when combined with Onto Innovation’s inspection and software technologies. By combining these technologies, we will offer a more comprehensive process control solution for the lithography cell in the rapidly expanding compound semiconductor market,” said Mike Plisinski, Onto Innovation’s chief executive officer.
Dr. Ju Jin, vice president and general manager of Onto Innovation’s inspection business said, “We see several growth drivers for the compound semiconductor and specialty semiconductor markets in 2021 and beyond. The rapidly expanding 5G wireless technology, spanning from smartphones and IoT to network equipment and base stations, is increasing the demand for compound semiconductor chips such as power amplifiers, RF filters, and mmWave cells. In addition, hybrid and electric vehicles, chargers, photovoltaic and wind power generators are driving the fast adoption of compound semiconductor power devices.
“Based on industry forecasts, the gallium nitride and silicon carbide power device market is forecasted to grow at a 25% CAGR from 2020 to 2025. By leveraging our advanced process control software (APC) and the Inspectrology systems we will be able to directly improve the overlay performance and yield for the lithography cells in this rapidly growing market.”
Paul Knutrud, Inspectrology’s chief financial officer and vice president said, “We are joining Onto Innovation based on the strong cultural fit and synergies between our customers and technologies. As a leading supplier for overlay and CD metrology systems to the compound semiconductor, RF, MEMS, and LED markets, the Inspectrology and the Onto teams are a perfect fit. Onto Innovation is providing inspection and software solutions to our same customers, and together, we will offer a more comprehensive solution for process control. We will now be able to leverage Onto Innovation’s R&D resources and larger customer support organization to better serve our customers.”
The experienced Inspectrology leadership team has supplied optical metrology overlay technology to these customers since 1983. The purchase price represents 1.4x Inspectrology’s 2020 revenue of approximately $20 million. The acquisition and associated transaction expenses are being funded from Onto Innovation’s cash on hand. Other terms of transaction were not disclosed.
