A startling phenomenon in the European back-end industry

Besi has taken over 100% of the Datacon shares, in return for which Datacon shareholders have received 90% cash and Besi shares. The volume of this deal reached the value of approximately euro 100m. Besi/Datacon are listed on the US technology stock exchange NASDAQ and on Euronext. For some time, Datacon’s management in Tirol had been looking for some time for a way to preserve the company in the long term because, although successful, it operates in a highly volatile market. The medium-sized company, despite its image as innovative and smartly managed, did not have the critical financial mass and resources for being triumphantly engaged in the North American, European and Asian key markets with customer support, sales, service, etc. all in parallel over an extend period of time. So, for a trusting and well-matched partnership, merger or acquisition was really a serious option.

Helmut Rutterschmidt, managing director of Datacon, underlines the decision: “Although Datacon was highly profitable and leader in market segments such as flip-chip technology, it was not one of the major players in the international semiconductor-equipment market. To persistently strengthen our competitive position and to safeguard jobs in the long term, also in downturns, we needed to significantly increase our financial power. We took plenty of time to search for a strategic investor and were very careful to find a solution that also guarantees the maximum possible autonomy for Datacon. In Besi, a European company of comparable size and corporate culture, also operating in the back-end sector of the semiconductor industry, we have found the ideal partner”.

Besi and Datacon have a common customer portfolio and complement each other ideally in their packaging solutions, with practically no overlaps. As well as the increasing size of the enterprise and the accompanying increase in financial strength, customers will be able to access a larger product portfolio and benefit from the exchange of expertise with the group. For customers, there will be no change in contacts at the companies. Board member Gerhard Zeindl adds: “Our aim is not the disappearance of Datacon into the overall group, but a large degree of autonomy within the group. The Datacon brand will be retained, as will the global corporate structure with our subsidiary companies. Consequently, there will be no significant changes in the operative business as a result of the merger. On the contrary, there is a considerably larger range of products and solutions are available to our customers from a single source to lead to a surge of growth in the group. Helmut Rutterschmidt and I’m being represented in the Besi management and will crucially help control the fortunes of the group”. Datacon’s co-founder Karl Schweitzer is withdrawing from the senior management and, as technological consultant, will continue to play a key role in research.

Besi designs, develops, produces, markets and maintains die-sorting (Laurier brand), flip-chip die-attach, handling and feeding (RDA), molding, trim-and-form, singulation (all under the Fico brand) and plating systems (Meco) for the worldwide semiconductor industry. The customers are leading American, European, Asian, Korean and Japanese semiconductor manufacturers and suppliers. The group with its various subsidiaries reached a net-sales figure of about euro 195m in the last financial year and employed about 800 people. Karl Schweitzer and Gerhard Zeindl founded Datacon in 1986 in Austria. In 1995, Helmut Rutterschmidt joined the company as third managing partner. Datacon employs some 440 staff worldwide.

www.datacon.at www.besi.com

EPP EUROPE 408