Benzinga | May 10, 2021 06:14AM EDT

Cohu Divests Printed Circuit Board Test Group Business To Mycronic For $125M

* Back-end semiconductor equipment and services provider, Cohu Inc (NASDAQ:COHU), inked an agreement to divest its Printed Circuit Board Test Group (PTG) business to Swedish high-tech company Mycronic AB (OTC: MICLF) for $125 million.

* The PTG business reported sales of $52.9 million for the year ended March 27, 2021.

* Cohu will utilize $95 - $100 million of the sale proceeds for debt repayment.

* The combination of forces with Mycronic creates additional scale in the PCB market segment and greater opportunities for PTG's success in the future while enabling Cohu to focus on semiconductor equipment and services businesses, Cohu CEO Luis A. M?ller said.

* Price action: COHU shares closed higher by 2.91% at $38.86 on Friday.