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Zygo Sells Off Semiconductor To Nanometrics


Zygo Corporation is selling its semiconductor business to Nanometrics (Nasdaq: NANO) and, as part of the deal, will be providing interferometer sensors to Nanometrics that will go into that company’s Unifire line of products. The sensors are also used in Nanometrics’ own line of automated metrology systems.

No financial details of the deal were disclosed. The deal does allow for joint development of other technologies aimed at the semiconductor industry and related industries, according to officials of the two companies.

In January, Zygo’s board of directors withdrew its recommendation of a previously announced merger with photonic and laser systems developer Electro Scientific Industries Inc. The board said at the time that its withdrawal of recommendation stemmed from “changes in conditions” since the agreement was signed in October. In April the two companies called off the merger and Zygo had to pay ESI a $5.4 million termination fee.

Founded in 1970, Zygo supplies the semiconductor equipment industry with electro-optical design and manufacturing services, optical metrology instruments and precision optics. For fiscal 2008, the company reported a profit of $1.24 million on revenue of $159 million.has sold inventory and certain assets to competing optical metrology technology company Nanometrics Inc. of California, in a deal that will have Middlefield, Conn.-based Zygo supplying sensors to Nanometrics.