Zygo buys Digital Instruments

Zygo buys Digital Instruments

Optics- and metrology-systems manufacturer Zygo Corp. (Middlefield, CT) has signed a letter of intent to acquire Digital Instruments (Goleta, CA) for approximately $220.5 million. Zygo will acquire all outstanding stock of Digital Instruments in exchange for seven million shares of Zygo common stock, approximately 40% of the total outstanding. Digital president Virgil Elings and vice president John Gurley will hold seats on the Zygo board of directors and be members of the management team. The company will be operated as a wholly owned subsidiary of Zygo and will remain in its current Goleta facility. Digital Instruments produces scanning-probe and atomic-force microscopes for semiconductor inspection and scientific applications and reported net sales of approximately $50 million in 1996.