Ultra Clean Holdings, Inc. acquired HIS Innovations Group for $120 million.
October 24, 2023
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Ultra Clean Holdings, Inc. (NasdaqGS:UCTT) acquired HIS Innovations Group for $120 million on October 25, 2023. Under the terms of the stock purchase agreement, UCT paid $50 million in upfront cash consideration for HIS, subject to customary post-closing adjustments. UCT would be required to pay up to an additional $50 million in cash earn-out consideration based on HIS' achievement of adjusted EBITDA for the 2023 fiscal year. The upfront cash consideration, together with this earn-out consideration, will equate to a price multiple of 8.3x HIS' 2023 adjusted EBITDA. UCT may also be required to pay up to an amount equal to any unpaid portion of the 2023 earn-out consideration plus an additional $20 million, based on HIS' achievement of certain financial performance metrics in 2024 and 2025. UCT anticipates the acquisition to be accretive to shareholders on an adjusted basis. The HIS team will continue to be based in Hillsboro and will report into UCT's Products division. Needham & Company, LLC served as financial advisor to UCT in the acquisition and Alan F. Denenberg, Jason Bassetti, Patrick E. Sigmon, Jonathan B. Brown, David R. Bauer, and Adam Kaminsky of Davis Polk & Wardwell LLP served as legal advisors to UCT.
Ultra Clean Holdings, Inc. (NasdaqGS:UCTT) completed the acquisition of HIS Innovations Group on October 25, 2023.
Ultra Clean Holdings, Inc. is a developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. It offers its customers an integrated outsourced solution for major subassemblies, design-to-delivery cycle times, design for manufacturability, and prototyping. The Companyâs segments are Products and Services. The Products segment primarily designs, engineers, and manufactures production tools, components, parts, and modules and subsystems. The Products segment includes chemical delivery modules, frame assemblies, gas delivery systems, fluid delivery systems, precision robotics and process modules as well as other high-level assemblies. The Services segment provides ultra-high purity parts cleaning, process tool part recoating, surface encapsulation and high sensitivity micro contamination analysis primarily for the semiconductor device makers and wafer fabrication equipment (WFE) markets.
ULTRA CLEAN HOLDINGS, INC. 
