| NEW YORK, April 10
NEW YORK, April 10 A unit of a large China-based
semiconductor investment fund has agreed to acquire U.S.
semiconductor testing company Xcerra Corp for $580
million in cash, the companies said on Monday.
The move comes after the Committee on Foreign Investment in
the United States (CFIUS), a government panel that reviews
acquisitions by foreign entities for potential national security
risks, has cracked down on technology deals related to the
Chinese suitors have faced intense scrutiny from regulators
in their pursuit of U.S. chip makers, resulting in some failed
deals in recent years.
The buyer is Unic Capital Management, a subsidiary of Sino
IC Capital that was founded last year, according to the news
release. Sino IC Capital was established in August 2014 and has
approximately RMB 138.7 billion ($20.9 billion) in funds under
management to invest in the semiconductor space.
Xcerra, based in Norwood, Massachusetts, designs and
manufactures equipment to test semiconductors and circuit
boards. It does not make semiconductors, according to the news
The deal is subject to CFIUS approval and is expected to
close by the end of the year.
"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," Jun Lu, president of Sino IC
Capital, said in a statement.
Unic is paying $10.25 per share in cash for Xcerra. Xcerra
shares were trading at $9.69 at midday on Monday, up about 8
percent. That was still below Unic's offer price, which
indicates some market skepticism about the deal closing.
Xcerra is able to seek other buyers for next 35 days in a
so-called go-shop provision of the merger agreement.
Xcerra was advised by Cowen and Company LLC and Latham &
Watkins LLP. Sinoc IC was advised by Grant Thornton
International and Wilson Sonsini Goodrich & Rosati.
(Reporting by Liana B. Baker in New York; Editing by Matthew