On November 17, 2025, Onto Innovation announced the closing of its acquisition of Semilab International’s key product lines—FAaST, CnCV, MBIR, and the EIR line—through a cash and stock transaction valued at approximately $495 million. The deal comprised $432.3 million in cash and 641,771 shares of Onto stock, a figure that aligns with SEC filings and reflects the $545 million valuation reported in earlier definitive agreements.
The acquisition broadens Onto’s portfolio in materials analysis and electrical characterization, two capabilities that are critical for advanced logic, AI‑enabling packaging, and power semiconductor customers. By integrating Semilab’s technologies with Onto’s existing optical defect inspection and process‑control solutions, the company can offer end‑to‑end inline wafer contamination monitoring, surface‑charge metrology, and electrical defectivity characterization—features that were previously unavailable in its product suite.
Financially, the added product lines are expected to generate $8–$10 million in revenue in the fourth quarter of 2025 and $120 million in 2026, with most of the 2026 contribution arriving in the second half of the year. The transaction is projected to be immediately accretive to margins and to add $0.02–$0.04 to diluted earnings per share in Q4 2025, reinforcing Onto’s guidance for higher profitability.
Onto’s third‑quarter 2025 results provide context for the acquisition’s impact. Revenue of $218.2 million fell 13.5% year‑over‑year to $252.2 million in Q3 2024, while non‑GAAP EPS of $0.92 beat the consensus estimate of $0.89 but missed the $0.71 forecast. The revenue shortfall was driven by weaker demand in legacy segments, whereas disciplined cost management and a favorable product mix helped preserve margins and support the earnings beat.
In light of the acquisition and the Q3 performance, Onto updated its fourth‑quarter 2025 revenue guidance to $258–$275 million, up from the prior $250–$265 million range, and EPS guidance to $1.18–$1.33. Management cited stronger demand in advanced packaging and AI‑enabling markets, along with the immediate accretion from the Semilab transaction, as the basis for the upward revision.
CEO Mike Plisinski emphasized the strategic fit of the acquisition, noting that “the combination of Semilab’s products with Onto’s defect‑inspection capabilities will enable more accurate electrical defectivity location and characterization, reducing the number of latent defective devices sold into the market.” He also highlighted the company’s momentum in AI packaging and advanced nodes, stating that the new product portfolio positions Onto to continue addressing customer challenges in the coming years.
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