Cohu to Sell Its Electronics Division for $9.5M+Sunday, June 8, 2014
Poway-based Cohu Inc. said that it has signed a definitive agreement to sell its electronics division to Coppell, Texas-based Costar Technologies for $9.5 million in cash, plus up to $500,000 in contingent consideration. The companies announced the deal June 4.
The electronics division had sales of $15.7 million in 2013. Overall revenue at Cohu (Nasdaq: COHU) was $247.3 million. The Poway corporation also produces a variety of other technical gear, including equipment used in manufacturing semiconductors.
Costar (OTC: CSTI), which has its headquarters in the Dallas-Fort Worth area, plans to enter a three-year lease to continue operating the electronics business at its current location in Poway.
Cohu updated its forecast for the second quarter, predicting sales in the range of $70 million to $78 million. It predicted non-GAAP gross margin and operating expenses of approximately 36 percent and $22 million.