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FormFactor to buy MicroProbe in $116.8M deal

LIVERMORE, Calif. (AP) -- FormFactor is buying MicroProbe Inc. in a cash-and-stock deal valued at $116.8 million.

FormFactor Inc., which makes devices used by chipmakers to test integrated circuits, said Monday that it will pay $100 million in cash and $16.8 million in stock for the privately held MicroProbe.

San Jose, Calif.-based MicroProbe, which manufactures and supports wafer-test probe card products, had $87.3 million in fiscal 2011 revenue and has about 360 workers globally.

"FormFactor and MicroProbe customers will benefit since the combined company will have the technology and resources to address semiconductor test requirements across the entire advanced probe card space," FormFactor CEO Tom St. Dennis said in a statement.

MicroProbe CEO Mike Slessor will become a senior vice president and executive officer of the combined company once the transaction is complete.

The acquisition is expected to close during the first half of FormFactor's fiscal quarter, which ends Dec. 29.

Shares of FormFactor, based in Livermore, Calif., gained 20 cents, or 3.9 percent, to $5.29 in midday trading on Tuesday. Over the past year, the stock has traded in a range of $4.68 to $7.64.