ARCHIVE 2004

Important strategic acquisition by COMET

In addition, an exclusive license agreement concluded with two U.S. companies gives COMET access to the expertise for manufacturing X-Ray minitubes. COMET is thus expanding its portfolio in the X-Ray business by adding promising applications and is single-mindedly implementing its strategy of broadening its technological offering and evolving from a component supplier to a microfocus system provider.

FEINFOCUS produces microfocus X-Ray tubes and systems. These devices are used to analyze ultrafine structures in the 100 nanometer range (a nanometer is equivalent to oneone billionth of a millimeter). The main area of application is quality control in the microelectronics industry, where ever smaller and more densely integrated components are used. These can be inspected for cracks and other imperfections only by means of XRay radiography, which increasingly takes the form of X-Ray-based, computer tomographic 3D imaging. The world market for microfocus tubes and systems in 2004 is estimated at € 160 million. Due to the trends toward miniaturization and multifunctionality in consumer electronics, telecommunications and information technology, this market is growing by about 15 to 25% per year.

FEINFOCUS was launched in 1982 as a pioneer in microfocus X-Ray technology and today is one of the leading system manufacturers in this area. FEINFOCUS has a staff of about 55 at its head office and production facility in Hanover-Garbsen, Germany, and at the U.S. sales offices in Connecticut and California. In view of the present good business outlook for the electronics and chip industry, FEINFOCUS is projecting sales growth in the double digits for 2004.

The purchase price is in the € 10 million range. Under the terms of the earn-out agreement involved, a part of this total is payable only upon fulfillment of the targets in the business plans for the years 2004 to 2006.

The acquisition is being funded by a capital increase based on the capital with a par value of CHF 1 million authorized by the Annual Meeting of Shareholders in 2003. While the FEINFOCUS Group specializes in miniaturization in the microfocus segment, COMET has separately gained use of the technology for mini X-Ray tubes with high dielectric strength through exclusive license agreements with two U.S. firms. Only a few centimeters in length, these minitubes are employed mainly in small, portable X-Ray systems. Such handheld instruments are used for the inspection of inorganic materials, for example to detect harmful substances such as lead in paints or electronic components. By forging these partnerships, the COMET Group also intends to further expand its subsystem expertise and the related service network.