Flextech Holdings Limited Acquires Texas Instruments Inspection Equipment Businesses

(June 26, 1997) -- Flextech Holdings Limited has announced the acquisition of several Texas Instruments semiconductor equipment businesses. The value of the sale is $9.4 million, with $4.2 million (U.S. dollars) payable at the closing and the rest due over the next three years. The new business, the first wholly-owned U.S. operation for Flextech, will be called Semiconductor Technologies & Instruments, Inc.

The business units are responsible for the design, manufacture and sales of inspection and conditioning equipment, laser marking equipment and vision OEM equipment, all used in the semiconductor assembly manufacturing process. The businesses have locations in Dallas and Singapore.

"This transaction represents an excellent opportunity to integrate our core competencies into the manufacture of vision inspection and laser marking equipment used in the semiconductor industry," said Joseph Au, CEO of Flextech Holdings Limited. "TI is well known as a key supplier of world-class equipment and has one of the largest installed bases. We are excited about the vast opportunities in this fast-growing industry."

"The engineers and designers who develop this equipment are pioneers in creating technologies used for semiconductor manufacturing and have made significant contributions to TI's excellence. These products will add depth and additional growth opportunities for Flextech," said Glenn Culhane, vice president, Semiconductor Group, at TI.

The transaction is expected to close by the end of June. Approximately 50 employees will transfer to Flextech after it establishes a U.S.-based infrastructure, anticipated to be completed in less than 60 days.

The Flextech Group was established in 1990 in Singapore. Following a corporate restructuring carried out in 1993, the Group was listed on the Stock Exchange of Singapore in September 1994. Presently, Flextech is an established electronics and IT Group in southeast Asia, and its core businesses include Industrial Distribution and Manufacturing, Semiconductor Products and Services, Technology Investments, and Internet Content and Services. Since its establishment, the Group has achieved compound growth rates exceeding 57% and 73% per annum in terms of annual revenues and net profits respectively.