HONG KONG -- In a stock filing, ASM Pacific Technologies indicated it would pay $170 million, less working capital, for its previously announced acquisition of DEK. The agreement also calls for a contingency payment of up to $3 million based on certain closing conditions.

The deal remains pursuant to approval from the German Federal Ministry of Economics and Technology and the board of DEK subsidiary DTG Shenzhen, which is also being acquired. The deal will close on the first day of the month following those approvals.

DEK had net profits of $54 million on sales of $283 million in 2011, but plunged to $19.2 million in profits on $167.4 million in sales in 2012 following the meltdown of the solar market. For the nine months ended Sept. 30, DEK's profits were $6.9 million on sales of $105.1 million.

DEK has 18,000 installations and 700 employees, ASM reported.

In the filing, ASM said it intends to combine DEK’s products with its own back-end and SMT equipment businesses to offer customers in the SMT market a closed loop system consisting of screen printers (DEK), screen paste inspection (SPI) and placement machines (Siplace).

[We] believe that this closed-loop system will enable the company to offer total SMT solutions [and] significant value through yield improvement," ASM said. "[T]he acquisition will enhance the company's knowledge in the entire assembly process of semiconductor packaging and SMT placement equipment [and] will also present opportunities to generate cost synergies through increased efficiencies in the areas of logistics, research and development, production, sales, service and procurement, and the consolidation of common infrastructure and overheads.

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