Nova is expanding into another field: will acquire the German company Ancosys for $ 100 million in cash

Nova, which develops measurement solutions for chipmakers, is expanding into another field and increasing its potential market. Nova, under the management of Eitan Oppenheim, has signed a binding agreement to acquire the German company Ancosys for $ 100 million in cash, including a payment of $ 10 million contingent on the performance of the acquired company.
Nova estimates that the transaction will be completed in the first quarter of 2022 and it is expected to increase its profit on a non GAAP basis within 12 months of its completion.
Ankosis is a private company headquartered in Plitzhausen, Germany, and develops and manufactures automated analytical systems for analyzing the chemical composition of materials - before entering the manufacturing process of chips, and also deals with measurement solutions for chip manufacturers.
Oppenheim noted that the deal is part of the company's strategy to expand its operations to tangent markets, thereby increasing the potential market it is facing. He said the acquisition of Ankosis will support the company's strategy to expand the range of technologies it offers to its customers, and provide a wider range of applications in the field of chip manufacturing process control.
The acquisition will allow Nova to offer a basket of solutions for measuring dimensions, materials and chemical measurement that will improve the production control process.
The German company's sales turnover is estimated at $ 35-30 million, and in the last two years it has grown at a high rate of market growth - that is, more than 35% per year.
Dror David, Nova's CFO, said the main synergies between Nova and Ankosis are expanding Nova's ability to offer materials solutions it entered in April 2015 when it acquired ReVera for $ 47 million. The second aspect of the synergy is expanding Nova's operations , Which focused on the initial production phase of the chips (Front End) where the transistor is placed on the blank silicon wafer, to the Backend phase - where the processing and cutting and packaging of the transistor is performed after it is placed on the silicon wafer.
According to him, Nova's activity in this market segment was a fraction of its turnover and was mainly aimed at the chip manufacturers who are its customers in the front end field such as TSMC, Samsung, Intel and Micron.
With the acquisition of Ankosis, Nova will be able to enter the market of relatively small companies that perform the packaging of the chips and deepen its presence in the field of advanced enclosures, which is the fastest growing sub-segment in the back end market, and has relatively advanced technologies.
David said the market in which Ancosys operates is currently estimated at $ 200 million a year and is expected to grow to $ 300 million within three years. So the acquisition of Ankosis increases the market potential of Nova (Total Addressable Market) by $ 300 million - that is, by 20%.
Nova announced in July 2021 a new strategic plan, noting that it intends to make $ 500-300 million in acquisitions in the coming years.