Cohu Completes Acquisition of Tignis

Rhea-AI Summary

Cohu (NASDAQ: COHU), a global supplier of semiconductor manufacturing equipment and services, has announced the completion of its acquisition of Tignis, a company specializing in AI process control and analytics-based monitoring software. The acquisition was funded using cash on hand, and the financial terms were not disclosed as they are not considered material to Cohu's financials.

Positive

• Strategic acquisition expanding into AI and software capabilities
• No additional debt taken (funded with cash on hand)

Negative

• None.

Insights

Technology Investment Analyst

This strategic acquisition positions Cohu to enhance its semiconductor testing capabilities through AI-driven process control and analytics. While the deal terms are undisclosed and deemed immaterial to financials, the integration of Tignis' AI software capabilities represents a calculated move to modernize Cohu's testing solutions portfolio. The key value proposition lies in the potential for improved yield optimization and productivity gains in semiconductor manufacturing processes.

From a competitive standpoint, this acquisition addresses the growing demand for smart manufacturing solutions in the semiconductor industry. The deal was executed efficiently using cash reserves, indicating healthy liquidity management. For context, with Cohu's $1.3 billion market cap, the acquisition's immaterial nature suggests a purchase price likely below $50 million, following typical materiality thresholds.

Looking ahead, the integration of Tignis' AI capabilities could accelerate Cohu's transition toward more automated and intelligent testing solutions, potentially leading to increased market share in the semiconductor equipment sector. However, the immediate financial impact will be minimal, making this a long-term strategic play rather than a short-term value driver.

POWAY, Calif.--(BUSINESS WIRE)-- Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced the completion of its previously disclosed acquisition of Tignis, Inc. (“Tignis”), a provider of artificial intelligence (AI) process control and analytics-based monitoring software.

The terms of the transaction, which are not material to Cohu’s financials, are not being disclosed. The acquisition was funded with cash on hand.

About Cohu:

Cohu (NASDAQ: COHU) is a global technology leader supplying test, automation, inspection and metrology products and services to the semiconductor industry. Cohu’s differentiated and broad product portfolio enables optimized yield and productivity, accelerating customers’ manufacturing time-to-market. Additional information can be found at www.cohu.com.

Forward-Looking Statements:

Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding success or contribution of M&A transactions and any other statements that are predictive in nature and depend upon or refer to future events or conditions; and/or include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and/or other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Any third-party industry analyst forecasts quoted are for reference only and Cohu does not adopt or affirm any such forecasts.

Actual results and future business conditions could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: new product investments and product enhancements which may not be commercially successful; the semiconductor industry is seasonal, cyclical, volatile and unpredictable; recent erosion in mobile, automotive and industrial market sales; our ability to manage and deliver high quality products and services; failure of sole source contract manufacturer or our ability to manage third-party raw material, component and/or service providers; ongoing inflationary pressures on material and operational costs coupled with rising interest rates; economic recession; the semiconductor industry is intensely competitive, subject to rapid technological changes, and experiences consolidation of key customers for semiconductor test equipment; a limited number of customers account for a substantial percentage of net sales; significant exports to foreign countries with economic and political instability and competition from a number of Asia-based manufacturers; our relationships with customers may deteriorate; loss of key personnel; risks of using artificial intelligence within Cohu’s product developments and business; reliance on foreign locations and geopolitical instability in such locations critical to Cohu and its customers; natural disasters, war and climate-related changes, including related economic impacts; levels of debt; access to sufficient capital on reasonable or favorable terms; foreign operations and related currency fluctuations; required or desired accounting charges and the cost or effectiveness of accounting controls; instability of financial institutions where we maintain cash deposits and potential loss of uninsured cash deposits; significant goodwill and other intangibles as percentage of our total assets; increasingly restrictive trade and export regulations impacting our ability to sell products, specifically within China; risks associated with acquisitions, investments and divestitures such as integration and synergies; constraints related to corporate governance structures; share repurchases and related impacts; financial or operating results that are below forecast or credit rating changes impacting our stock price or financing ability; law/regulatory changes and including environmental or tax law changes; significant volatility in our stock price; the risk of cybersecurity breaches; enforcing or defending intellectual property claims or other litigation.

These and other risks and uncertainties are discussed more fully in Cohu’s filings with the SEC, including our most recent Form 10-K and Form 10-Q, and the other filings made by Cohu with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. Except as required by applicable law, Cohu does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107991345/en/

Investor Contact:

Cohu, Inc.

Jeffrey D. Jones, 858-848-8106

Investor Relations

Source: Cohu, Inc.

FAQ

What company did Cohu (COHU) acquire in its latest acquisition?

Cohu acquired Tignis, a provider of artificial intelligence process control and analytics-based monitoring software.

How did Cohu finance the Tignis acquisition?

Cohu funded the Tignis acquisition using cash on hand.

What is the value of Cohu's Tignis acquisition?

The financial terms of the Tignis acquisition were not disclosed as they were not considered material to Cohu's financials.

What technology capabilities does the Tignis acquisition add to Cohu?

The Tignis acquisition adds AI process control and analytics-based monitoring software capabilities to Cohu's portfolio.