Benzinga | Mar 1, 2021 07:48AM EST

CMC Materials To Acquire International Test Solutions For $125M

CMC Materials Inc (NASDAQ: CCMP) inked an agreement to acquire manufacturing & technical consulting services company International Test Solutions, Inc (ITS) for $125 million in cash.

* ITS will be a part of the company's Electronic Materials business segment.

* ITS acquisition will expand CMC Materials' portfolio of critical, enabling solutions. With ITS' combination of technical and applications expertise, operations team, and global sales and distribution network, CMC Materials will be able to augment its leadership in partnering with device manufacturers and foundries to design and produce consumable, application-specific materials in the semiconductor manufacturing process.

* "ITS is a great addition to our Electronic Materials business segment, bringing their advantaged technology positions and exposure to attractive growth trends in the semiconductor industry. Back-end processes are evolving to meet the increasing complexity of semiconductor devices, and ITS is at the center of this evolution, delivering significant value to customers by enhancing operational yields and production line efficacy," said CMC Materials VP Dann Woodland.

* The company's cash and cash equivalents stood at $278.9 million as of December 31, 2020. CMC expects to fund the deal with cash on hand and expects to complete the transaction in April 2021

* Price action: CCMP stock was up 2.32% at $170.50 on the Friday close.