Varian to Buy Some Chip Assets From Genus
Varian Associates Inc. said it will buy some semiconductor assets from Genus Inc. for $25 million in cash to speed its entry into the chip industry’s high-energy sector. Varian, whose businesses also include health-care systems and analytical instruments, said additional payments will be made to Genus if the product lines reach unspecified revenue targets. In addition, Genus would transfer to Varian a leased facility that Genus operates in Newburyport, Mass. Palo Alto-based Varian said the transaction will complement its line of ion implant products, used in the early stages of semiconductor chip-making. The acquisition would add high-energy systems, a growing sector for semiconductor suppliers, to Varian’s chip-making products. Genus, a Sunnyvale-based maker of semiconductor equipment, said the sale will allow it to concentrate on improving its thin-films division, which supplies equipment to semiconductor makers. Varian shares fell $2.06 to close at $51.88 on the NYSE; Genus shares fell 13 cents to close at $2.25 on Nasdaq.