PORTLAND, OR– Electro Scientific Industries, Inc. (ESI) and Zygo Corporation have entered into a merger agreement in which both companies will merge in an all stock transaction. It is expected that the transaction will be completed by the first quarter of 2009. The 11-member board of directors of ESI will include three designated by Zygo.
Combined revenues for 2007 were nearly $458 million. The terms of the agreement include a tax-free transaction where Zygo shareholders receive 1.0233 shares of ESI stock for each share of Zygo stock. To complete the transaction, ESI will issue nearly 18.1 million shares on a diluted basis. The result will be 40% Zygo shareholder ownership of the combined company.
By joining forces, the companies predict growth strategy to increase by “combining the core competencies and market presence” of each. The merger is still dependent upon stockholder approval, customer closing conditions and regulatory approvals.