Business

Ceradyne acquires chip company

Ceradyne Inc. is buying SemEquip Inc. for $25 million in cash and as much as $100 million in contingency payments over 15 years based on SemEquip's revenues.

In its announcement Wednesday, Ceradyne said it will take a pre-tax charge of $9 million to $11 million when the acquisition occurs because of incentive payments to SemEquip employees and advisors.

SemEquip is privately held and based in North Billerica, Mass. It develops cluster ion subsystems and advanced ion source materials used in logic and memory chips.

The company also has a “significant” patent portfolio related to cluster chemicals in semiconductor ion implantation, Ceradyne said. The acquisition will expand Ceradyne's boron products and semiconductor businesses.

The acquisition is expected to occur in about 30 days, pending approval by SemEquip shareholders.

Ceradyne is publicly owned and based in Costa Mesa, Calif. It has two ceramics products plants in Lexington. Ceradyne's stock trades on Nasdaq as CRDN.

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