Credence $34M deal for EPRO targets memory testing entry

Electronic News, Feb 13, 1995 by Jeff Dorsch

FREMONT, Calif.--Credence Systems will enter the nonvolatile memory testing market through the acquisition of EPRO, a supplier of memory test equipment and memory endurance cyclers in Santa Clara, Calif. Credence will exchange about 1.4 million shares of its common stock, valued at approximately $34 million, for all the shares in privately-hold EPRO.

The deal is subject to regulatory clearance and approval by EPRO's shareholders, along with customary closing conditions. Credence expects to close the transaction in 45-60 days. A Credence subsidiary, Semiconductor Test Solutions, will officially carry out the acquisition, which Credence will account for as a pooling of interests.

The non-volatile memory test market, especially the equipment in the next 12 months," Mr. Conley said.

The other flash leader, Advanced Micro Devices (AMD), last year selected Advantest to supply test equipment for its flash memories (EN, March 14, 1994). AMD has a flash memory joint venture in Japan with Fujitsu that is just beginning to produce devices, and Advantest is an affiliate of Fujitsu, industry observers noted.

"They (Advantest) won that round of business," Mr. Conley said. For the next round of AMD purchasing, "I think we will have a shot."

The EPRO executive sees Megatest as the main competitor in flash and non-volatile memory testing. "We don't see Versatest as much as Megatest," he said. "They (Versatest) historically put their guns on one account at a time. It will take Hewlett-Packard a couple of years to figure out what they've bought."

For Credence, this deal signals a return to the acquisition game. "We still have our sights on being one of the leaders," said Mr. Spedden.