Mergers & Acquisitions

Mergers & Acquisitions

February 22, 2011

Amtech Acquires Kingston's Ion Implant Technology Company

Amtech Systems, a supplier of production and automation systems and related supplies for the manufacturing of solar cells, announced that it completed the acquisition of 55 percent stake in Kingstone Technology Hong Kong.

Kingstone Technology is a Hong Kong-based holding company that owns 100 percent stake in Kingstone Semiconductor Company, a Shanghai-based technology company specializing in ion implant solutions for the solar and semiconductor industries.

“With completion of this acquisition, Amtech (News - Alert) has established a technology beachhead in a strategically key region of the world, increased our technology expertise, and created a solid foundation for future opportunities for our solar business,” said J.S. Whang, chief executive officer of Amtech, in a statement.

The main objective for acquiring Kingstone's ion implant technology is to offer Amtech customers a more complete solution for their future higher efficiency solar cell production.

Ion implant and diffusion furnace technologies will compliment each other and largely grow together into the future market. The combination of Amtech's position in solar diffusion and Kingtone's expertise in ion implant technology creates the best opportunity for development of an ion implant machine for the solar market, company officials said.

For its 55 percent stake, Amtech paid $5.5 million in the form of cash and stock and $4 million in the form of a contingent promissory note. The payments of up to $4 million will be used to fund Kingstone Semiconductor's development of solar ion implant machine.

Amtech will have exclusive global rights to sell and service any solar ion implant machine developed by Kingstone Semiconductor. Over the next two years, Amtech will offer additional funding for the development of the next generation solar ion implant machine.

Recently, Amtech announced its revenue guidance for the March quarter and for the full fiscal-year 2011. For fiscal 2011, Amtech has guided for revenue to surpass $230 million, a greater than 92 percent increase from fiscal 2010, with fiscal 2011 second quarter revenues in the range of $55 to $60 million, the announcement from Amtech said.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Janice McDuffee

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