Chinese investment fund to buy US semiconductor testing company Xcerra for $580 mn

Unic Capital Management, a subsidiary of China-based semiconductor investment fund Sino IC Capital yesterday struck a deal to buy US semiconductor testing company Xcerra Corp for $580 million in cash.

Under the terms of the deal, Unic has offered to pay $10.25 per share in cash. Xcerra shares closed at $9.61, below Unic's offer price, which analysts have doubts about the deal closing.

Xcerra can seek other buyers for next 35 days in a so-called go-shop provision of the merger agreement.

The deal is subject to approval of the Committee on Foreign Investment in the United States (CFIUS), a government panel that reviews acquisitions of US companies by foreign firms, especially from China, for potential national security risks.

"Sino IC Capital and Xcerra will work closely together with regulators, in an open and transparent manner, as they evaluate the merits of the transaction," said, Jun Lu, president of Sino IC Capital, in a statement.

Formed in 2014 through the LTX-Credence acquisition of Everett Charles Technologies and Multitest from Dover Corporation, Xcerra designs and manufactures equipment to test semiconductors and circuit boards.

The company focuses in design and development of ATE for the semiconductor industry, and offers test platforms capable of testing mixed signal (analog & digital) devices.

The Massachusetts-based company's four brands are atg-Luther & Maelzer, Everett Charles Technologies, LTX-Credence, and Multitest.

Unic Capital was founded last year, while Sino IC Capital was established in 2014 with around $20.9 billion in funds under management to invest in the semiconductor industry.