Cascade Microtech, Inc. (CSCD) Stock Jumps 31% on $352 Million Acquisition by FormFactor (FORM)


Cascade Microtech, Inc. (NASDAQ:CSCD) shares are up big today after it has been announced that FormFactor, Inc. (NASDAQ:FORM) has reached an agreement to acquire the company for approximately $21.13 per share. The acquisition will see shareholders receiving $16 in cash per share plus 0.6534 shares of FormFactor common stock. The deal is valued at approximately $352 million.

“We are extremely excited to be uniting FormFactor and Cascade today,” said Mike Slessor, FormFactor’s President and Chief Executive Officer. “The combination of our products, technologies, and addressable markets enables us to rapidly take the next step in achieving FormFactor’s strategic growth objectives. At the same time, we are able to realize significant financial synergies that the two companies would not be able to realize on their own.”

“I am enthusiastic about the combination with FormFactor as both companies share a legacy of innovation and technology development”, said Mike Burger, Cascade’s President and Chief Executive Officer. “As a combined entity, FormFactor and Cascade will be the leader in the production probe card and engineering systems markets. The combination of Cascade and FormFactor creates a larger, stronger company that will drive long-term value for our customers, employees, partners, and shareholders.”The stock is up 31.61% or $4.83 following the news, hitting $20.11 per share. About 787,792 shares traded hands or up 1748.76% from the average. CSCD has risen 0.33% since June 30, 2015 and is currently uptrending. It has outperformed the S&P500 by 7.63%.

From a total of 2 analysts covering Cascade Microtech (NASDAQ:CSCD) stock, 0 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 0 of the ratings are positive. Cascade Microtech was the topic of 2 analyst reports since September 7, 2015 according to the firm StockzIntelligence Inc. B. Riley & Co maintained shares on January 15 with a “Neutral” rating.

The institutional sentiment decreased to 1.29 in Q2 2015. It’s down 0.44, from 1.73 in 2015Q2. The ratio worsened, as 8 funds sold all their Cascade Microtech, Inc. shares they owned while 23 reduced their positions. 10 funds bought stakes while 30 increased their total positions. Institutions now own 14.96 million shares which is 43.15% more than the previous share count of 10.45 million in 2015Q2.

Koch Industries Inc holds 17.59% of its total portfolio in Cascade Microtech, Inc., equating to 167,287 shares. Paragon Associates & Paragon Associates Ii Joint Venture owns 967,500 shares representing 14.62% of their total US portfolio. Moreover, Thomson Horstmann & Bryant Inc has 0.95% of their total portfolio invested in the company, equating to 688,115 shares. The Minnesota-based Punch & Associates Investment Management Inc. has a total of 0.62% of their portfolio invested in the stock. Teton Advisors Inc., a New York-based fund reported 249,060 shares owned.

Since September 10, 2015, the stock had 0 insider buys, and 2 insider sales for a total of $125,680 in net activity. Delafield John D sold 1,855 shares worth $29,680.

Cascade Microtech, Inc. is a designer, developer, maker and marketer of wafer probing, thermal and reliability solutions for the electrical measurement and testing of semiconductor devices. The company has a market cap of $240.25 million. The Firm operates through two business divisions: Systems and Probes. It has 27.49 P/E ratio. The Systems business segment is engaged in the sale of probe stations, thermal subsystems and reliability test systems.