SAN JOSE, Calif. -- Seeking to raise cash, Axcelis Technologies Inc. has sold its joint venture in Japan to its partner.
Axcelis (Beverly, Mass.) entered into an agreement in which Sumitomo Heavy Industries Ltd. (SHI) will purchase Axcelis' 50 percent interest in their joint venture for 13 billion yen or approximately $133 million in cash. Axcelis and SHI (Tokyo) each currently own 50 percent in SEN Corp., the joint venture that is licensed by Axcelis to manufacture and sell certain implant products in Japan.
Axcelis will use a portion of the proceeds from the sale of its SEN interests to meet its obligations under its 4.25 percent Convertible Senior Secured Subordinated Notes, which were due in January. Pending the closing, the trustee for the notes has agreed to stand down on litigation filed in connection with Axcelis' default on the notes.
Axcelis and SEN will enter into cross licenses that will allow the two companies to continue to use certain patents and technical information owned by the other.
Axcelis' license to SEN would not include patents, licenses, or technical information developed by Axcelis for the Optima HD, Optima XE, or any non-implant products. The transaction will terminate all existing agreements among Axcelis, SHI and SEN relating to the SEN joint venture.
Last year, SIH--along with private-equity firm TPG--launched an unsolicited and hostile bid to acquire ion-implanter specialist Axcelis for approximately $544 million.
Axcelis rejected that offer. SIH made other bids, but Axcelis rejected those offers as well. SIH finally gave up in its efforts to buy the struggling firm.