Brooks Automation to buy PRI Automation for 1.46 times revenue

Featured Transaction

The Deal: Brooks Automation Inc. has agreed to purchase PRI Automation Inc. for $437 million in stock. Brooks expects the addition to boost earnings in 2003.

Discussion: PRI Automation makes factory automation systems and robotic wafer handling systems that transport, handle and store individual silicon wafers during chip production. These products boost process efficiency and limit damage to the costly wafers. PRI's products include systems for wafer transport and storage, storage of reticles, which are glass plates used in photolithography, and tool automation, as well as associated software and support services. PRI's largest customers are semiconductor giant Intel and chip equipment maker KLA-Tencor.

Brooks Automation is a top maker of equipment used to manufacture semiconductors, data storage devices and flatpanel displays. Its products include wafer handling systems, vacuum transfer robots, ultraclean mini-environments for wafers and processing equipment and factory automation software. Customers include Lam Research, LSI Logic, Samsung Electronics and Seagate. While Brooks has laid off workers in response to a severe slump in the global chip industry, it has continued to expand its product line and international presence through a string of acquisitions.

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