Thursday, October 16, 2008

Zygo and ESI merge photonics forces

By Mass High Tech Staff

Optical metrology systems supplier Zygo Corp. and photonic and laser systems developer Electro Scientific Industries Inc. have announced an all-stock merging of the two companies. Combined 2007 revenue for Zygo and ESI reached about $458 million.

Zygo (Nasdaq: ZIGO), based in Middlefield, Conn., and founded in 1970, supplies the semiconductor equipment industry with electro-optical design and manufacturing services, optical metrology instruments and precision optics.

Portland, Ore.-based ESI (Nasdaq:ESIO), founded in 1944, serves the semiconductor, micromachining and components markets by supplying photonics and laser systems.

The merger calls for Zygo shareholders to gain 40 percent ownership in the combined company. Zygo shareholders will get 1.0233 shares of ESI stock for each share of Zygo stock, the two companies reported.

The board of directors at both Zygo and ESI have unanimously approved the merger and no await approval from the two companies’ stockholders. Once the merger is complete, three Zygo officials will join ESI’s 11-member board of directors.