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Tessera (TSRA) Acquires 3D Chip Bonder Ziptronix for $39M

Tessera Technologies, Inc. TSRA recently acquired Ziptronix, Inc. in a cash transaction worth $39 million. This will enhance Tessera’s advanced packaging capabilities with the addition of low-temperature wafer bonding technology platform that will speed up delivery of 2.5D and 3D-IC solutions to clients in the semiconductor industry.

Ziptronix

Ziptronix offers a process to chemically bond chips at lower-than-normal temperatures. This is vital as high-temperature bonding processes often spoil chips. The technology, initially developed at Research Triangle Park, NC-based RTI International, led to the founding of Ziptronix in 2000.

Ziptronix raised more than $31 million in venture capital from a group of investors that comprised Grotech Capital Group, Alliance Technology Ventures and Intersouth Partners.

Some of its licensing partners include Raytheon RTN, Tezzaron Semiconductor and Sony SNE.

Reasons Behind the Acquisition

According to Tessera, Ziptronix’s bonding technology makes 3D chip stacking scalable and more economical. The company believes that the technology deals with an extensive range of semiconductor market applications that could cross $15 billion annually by 2019.

According to Tessera CEO Tom Lacey, “I’m confident that aligning our respective capabilities with our development expertise will help create a multi-hundred million dollar revenue opportunity for Tessera over the next decade as the industry continues to shift toward 3D-IC architectures”.

This acquisition will, however, not alter Tessera’s target operating expense structure. The company is making no adjustment to third-quarter 2015 revenue or earnings per share guidance.

Earlier this month, Tessera reported second-quarter 2015 earnings of 55 cents, plunging 24.4% from the previous quarter but up a massive 285.5% year over year. It also surpassed the Zacks Consensus Estimate by 10 cents.

Tessera currently holds a Zacks Rank #2 (Buy). Investors may also consider Amazon.com Inc. AMZN sporting a Zacks Rank #1 (Strong Buy).

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SONY CORP ADR (SNE): Free Stock Analysis Report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
RAYTHEON CO (RTN): Free Stock Analysis Report
 
TESSERA TEC INC (TSRA): Free Stock Analysis Report
 
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