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|| Chinese investors of Sino IC Capital acquired US firm Xcerra for $580 million

xcerra chinaChinese investors of Unic Capital Management, an affiliate of Sino IC Capital, has acquired US semiconductor firm Xcerra Corporation for $580 million in an all cash deal.

Founded in 1976 and headquartered in Norwood, Massachusetts, Xcerra designs and manufactures equipment to test semiconductors and circuit boards. Sino IC Capital was established in 2014, with approximately $20.9 billion funds under management.

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More details follows:

Xcerra Corporation and Sino IC Capital Co. Ltd. announced that Xcerra and an affiliate of Sino IC Capital , Unic Capital Management Co., Ltd., have entered into a definitive agreement under which Unic Capital Management Co., Ltd., will acquire all outstanding shares of Xcerra for $10.25 per share in cash. The transaction price represents approximately a 16 percent premium to Xcerra's average closing price over the 30 trading day period ending April 7, 2017, approximately a 28 percent premium to Xcerra's average closing price over the 90 trading day period ending April 7, 2017, and values Xcerra's equity at approximately $580 million on a fully diluted basis.

Xcerra's Board of Directors has unanimously approved the transaction. Xcerra expects no changes to the day-to-day operations of the company and expects that Xcerra's existing management will continue to run the company.

Xcerra Corporation designs and manufactures test equipment and other related products for testing semiconductors and printed circuit boards, which are used in a variety of commercial industries including consumer electronics, automotive, and industrial. Xcerra does not design or manufacture semiconductor devices; Xcerra sells test and handling equipment and related products to semiconductor designers and manufacturers who use Xcerra products to test their devices during the manufacturing process.

Dave Tacelli, president and chief executive officer of Xcerra said: "The partnership we have announced today with Sino IC Capital will deliver strong value for our shareholders and will also benefit our customers and employees. With the financial backing of such a prominent and respected private equity fund, Xcerra will be well positioned for future growth, both in new and existing markets. We believe this partnership will enable the company to make long term investments in innovation and product development as well as broaden and strengthen our customer relationships around the world."

Mr. Jun Lu, president of Sino IC Capital, added, "Xcerra's leadership team and employees have delivered quality products and innovations to their customers and the marketplace for over four decades. Our partnership with and investment in Xcerra will help build on this track record of success and accelerate the company's ability to access new markets, develop new product lines, and serve more customers. We value the entire Xcerra team and are committed to keeping the company's headquarters in Norwood, Massachusetts. Sino IC Capital and Xcerra will work closely together with regulators, in an open and transparent manner, as they evaluate the merits of the transaction."

The transaction is subject to a number of conditions, including approval by Xcerra's shareholders as well as antitrust and other regulatory approvals including from relevant authorities in China and from the Committee on Foreign Investment in the United States (CFIUS). The transaction is currently expected to close before the end of the calendar year.

The merger agreement includes a "go-shop" period, during which Xcerra will actively solicit alternative proposals from third parties for the next 35 days continuing through May 12, 2017. The merger agreement requires Xcerra to pay a termination fee of $14,250,000 to an affiliate of Sino IC Capital if Xcerra terminates the merger agreement in connection with a superior offer that arose during the go-shop period and a termination fee of $22,800,000 if Xcerra terminates the merger agreement in connection with a superior proposal that arose following the go-shop period. There can be no assurance that this process will result in a superior proposal. Xcerra does not intend to disclose developments with respect to the solicitation process unless and until its Board of Directors has made a decision with respect to any potential superior proposal.

Cowen and Company, LLC is serving as Xcerra's financial advisor and Latham & Watkins LLP is serving as Xcerra's legal advisor. Grant Thornton International is serving as Sino IC Capital's accounting advisor and Wilson Sonsini Goodrich & Rosati is serving as Sino IC Capital's legal advisor. (c) company release



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