Axcelis Technologies (ACLS) Completes Sale of its 50% Interest in SEN Corporation to Sumitomo Heavy Industries

March 30, 2009 11:53 AM EDT
Axcelis Technologies, Inc. (Nasdaq: ACLS) has completed the sale of its 50% interest in SEN Corporation, an SHI and Axcelis Company (SEN), to Sumitomo Heavy Industries, Ltd. (SHI). The Company received net proceeds from the sale of approximately $122.3 million after advisor fees and other expenses and will recognize a gain on the sale of approximately $1.2 million in the first quarter of 2009.

Axcelis has applied $86.4 million of the sale proceeds to meet its obligations on its 4.25% Convertible Senior Subordinated Notes, which were due in January. As a result of the payment, the trustee for the notes will withdraw litigation filed in connection with Axcelis' default on the notes.

The sale was completed pursuant to a Share Purchase Agreement that Axcelis and SHI entered into on February 26, 2009. SEN was licensed by Axcelis to manufacture and sell certain implant products in Japan. Prior to the completion of the sale, it was owned 50/50 by Axcelis and SHI. [SM]

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