Acquisition adds unique materials characterization technology for advanced nodes, advanced packaging and compound semiconductor applications
Transaction expected to add over $130 million to Onto Innovation’s annual revenue, be immediately accretive to gross and operating margins, and increase non-GAAP EPS by over 10% in year one
Onto Innovation Inc. announced that it has entered into a definitive agreement to acquire the materials analysis business of Semilab International for $475 million in cash and 706,215 shares of Onto Innovation common stock. Based on the closing price of Onto Innovation’s common stock on June 27, 2025, the total transaction value is approximately $545 million.
The acquisition adds four complementary product lines providing inline wafer contamination monitoring and materials interface characterization. As the use of exotic materials in semiconductor manufacturing rapidly expands, demand for advanced materials analysis is growing significantly. This portfolio has grown at an approximately 20% compound annual growth rate since 2021 and is projected to generate approximately $130 million in annual revenue in 2025. Onto Innovation expects to further enhance the customer value proposition by integrating its Ai Diffract™ modeling engine and leveraging advanced dimensional metrology, helping speed yield learning for new devices in packaging, power semiconductors and potentially the advanced nodes.
This acquisition aligns with Onto Innovation’s strategy to excel in high-growth, high-margin segments of the semiconductor value chain, particularly where device complexity is accelerating, such as the production of chips required for AI applications. It reflects the company’s disciplined approach to capital allocation and commitment to long-term shareholder value. The transaction is expected to be immediately accretive to both gross and operating margins and to increase non-GAAP earnings per share by more than 10% in the first year following close, adding over $130 million to Onto Innovation’s annual revenue. Onto Innovation expects a smooth integration, supported by strong cultural and technical alignment between the two organizations.
“We’re excited to welcome Semilab’s talented materials characterization team to Onto Innovation,” said Mike Plisinski, chief executive officer of Onto Innovation. “This acquisition expands our portfolio of process control technologies, which work together to help customers achieve their yield targets. This portfolio is exciting as it has demonstrated broad customer appeal and we see additional technical synergies with our modeling and acoustic metrology technologies, which we expect to provide additional benefit to our customers.”
The transaction is expected to close in the second half of 2025 and is subject to U.S. and Hungarian regulatory approvals and customary closing conditions. Onto Innovation and Semilab have aligned on detailed transition services to ensure customer continuity and post-close support.
Onto Innovation will provide further details during its second quarter earnings release in early August. Onto Innovation affirms its second quarter guidance, initially provided on May 8, 2025.
Barclays Capital Inc. is serving as financial advisor, and Simpson Thacher & Bartlett LLP as legal advisor, to Onto Innovation in connection with the potential transaction. Semilab is advised by Needham & Company, LLC and Hill, Ward & Henderson P.A.
