With over half a billion dollars in the coffers and a desire to continue to expand, the technology company Nova is taking the necessary step and reporting on the acquisition of a company for $ 100 million. Nova , Which provides measurement solutions for controlling the production processes of semiconductors, acquires the German ancosys engaged in the field of chemical measurements. The consideration in the transaction includes $ 10 million to be paid in the future on a performance basis. The annual sales of the acquired company are over $ 30 million, and it employs 150 people, all of whom will join Nova.
“There are two key things in our purchasing strategy,” says Nova Oppenheim, CEO of Nova. In terms of technology, we have optical products for measuring geometric dimensions and X-ray for measuring materials, and with the purchase we can offer another product line of chemical measurements in production processes, which is another tier in the world of process control, which will allow us to give a more complete picture.
“In terms of customers, Nova is at the beginning of the production process, and further down the road there are more processes, and Ankosis allows us to enter two main processes – the Advance Packaging market, and the Backend, a world where there is a different type of measurement.”
Oppenheim notes that Nova is already selling in the backend market, but the acquisition will be its first significant entry into this market, and he says Nova is definitely interested in continuing to expand in it. “Expanding horizontally to tangent markets is the center of the strategy, and it will allow us to sell our products in these markets and develop further,” he adds.
“There are more goals to buy today”
The chemical measurements that Ancosis performs relate to the advanced materials used in the construction of transistors and chips, in order to make sure that the use is of the right material, the right compound and the like.
Are there more purchases on the episode?
“We are very aggressive in this world. The Corona interest in the last two years has made on the one hand those who managed to cope well, become stronger. But there is a list of companies that failed, and are more available to talk today about acquisition.
Nova is traded on the Nasdaq and Tel Aviv at a value of $ 3.8 billion after a 114% increase in its share price over the past year. The company has set itself an annual revenue target of $ 500 million, with an operating profitability of 26% -29% by 2024. With the publication of the target last summer, Nova estimates that it will spend $ 300-350 million on mergers and acquisitions.
Recall that last year Nova raised $ 200 million in a convertible bond issue at 0% interest, and after generating $ 112 million in current operations in the first three quarters of 2021, it had cash and investments of about $ 536 million at the end of the third quarter.