Brooks buys Zygo's reticle automation unit, receives U.S. query in PRI purchase

CHELMSFORD, Mass.--Continuing its acquisition campaign, Brooks Automation Inc. here today announced it has purchased Zygo Corp.'s Automation Systems Group, which supplies reticle sorters, inspection systems, and handlers for semiconductor manufacturing. The purchase was for $11 million in cash.

Today's announcement came as Brooks Automation also disclosed that it has received a request from the U.S. Department of Justice for additional information in the company's pending acquisition of PRI Automation Inc. The request comes from the agency's Antitrust Division, which is reviewing the proposed $380 million stock transaction.

Seven weeks ago, Brooks and PRI announced a purchase agreement to create a $700 million supplier of wafer fab automation systems and software (see Oct. 24 story).

Brooks and PRI, based in Billerica, Mass., said they intend to respond "diligently and as quickly as possible to the second request" for information from the Justice Department. The two companies said the waiting period for the pending acquisition, under the U.S. antitrust laws, expires 30 days after substantial compliance with the request for additional information, unless terminated earlier by the Justice Department. Brooks and PRI said they continue to expect the acquisition to be completed in the first quarter of 2002, after the government review and shareholder approval.

Meanwhile, Brooks continues to expand its business with the cash purchase of Zygo's reticle automation systems business, which is headquartered in Longmont, Colo.

"The Zygo Automation Systems acquisition is an important part of Brooks Automation's strategy of supplying an integrated suite of lithography automation systems," said Robert J. Therrien, president and chief executive officer of Brooks in Chelmsford. "The cost of advanced photomask sets can now exceed $500,000, causing semiconductor manufacturers to turn increasingly towards automated reticle handling systems such as Zygo's Zaris product to eliminate problems that may be caused by manual operations.

"This acquisition will enable Brooks to provide a more complete solution for lithography automation, thus adding more value to our partnership with our customers," Therrien added.

The group supplies reticle sorters, reticle macro inspection systems, and reticle handling solutions.

"While the Automation Systems Group has had an excellent record of success as a part of the Zygo organization, the divestiture of the group will enable Zygo to focus on our core areas of precision optics, optical and fiber optic assemblies, and high performance metrology systems," said Bruce Robinson, chairman, president, and chief executive officer of the Middlefield, Conn.-based company.

Zygo will retain its core automation business activities as related to metrology-integrated solutions and photonic and electronic module assembly in Delray Beach, Fla., said Robinson.