NORWOOD, MA -- The parent company of PCB test equipment OEMs Luther & Maelzer, ECT and ATG has called off a planned sale to a Chinese government-backed investment fund following a US ruling blocking the deal.
The Committee on Foreign Investment in the United States on Thursday nixed the $580-million sale of Xcerra to Hubei Xinyan, citing national security concerns.
Xcerra also owns Multitest and other semiconductor test brands.
“While we are disappointed that we were not able to receive approval from CFIUS on this transaction, Xcerra and Xinyan are discussing alternatives to pursue opportunities in new and existing markets in China,” said Dave Tacelli, chief executive of Xcerra.
CFIUS denied the acquisition by Xinyan over concerns Xcerra's equipment is used by chip manufacturers that supply to the US government and military, Reuters reported, citing confidential sources0.