PDF Solutions (PDFS) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of SecureWISE strengthens PDF Solutions' leadership in secure remote connectivity, data analytics, and collaboration for the semiconductor industry, supporting tighter integration among equipment suppliers, factory operators, and fabless chip companies.

• SecureWISE's platform is installed in over 90% of the world's 300mm semiconductor fabs, providing significant market reach and aligning with PDF Solutions' existing product offerings.

• The deal enables expansion into advanced packaging and OSATs, leveraging synergies with Exensio, Cimetrix, and DEX platforms to enhance value for equipment vendors and factories.

• Positions PDF Solutions to address growing complexity, global distribution, and chiplet integration trends in the semiconductor ecosystem.

Financial terms and conditions

• The acquisition price is $130 million, funded by a mix of cash on hand and $70 million in new bank debt, subject to customary adjustments and closing conditions.

• SecureWISE operates a cloud-based SaaS model with ratable subscriptions based on connected systems and data transferred.

• The transaction is expected to close in the first quarter of 2025.

• The deal is expected to be EPS accretive in 2025 and support achievement of a 20% operating margin.

Synergies and expected cost savings

• Significant overlap in customer bases between SecureWISE, Cimetrix, and Exensio enables cross-selling and upselling opportunities.

• Integration with DEX, Cimetrix, and Exensio platforms will enhance analytics, security, and collaboration for equipment vendors and factories.

• The combined network will increase scale, supporting further investment in security and platform improvements.

• Accelerates equipment makers' ability to extract value from equipment data and expands the secure DEX OSAT network.