Onto Innovation Inc. (NYSE: ONTO) announced it will acquire a 27% stake in X-ray technology company Rigaku Holdings Corporation for approximately $710 million. The transaction is expected to close in the second half of 2026, subject to regulatory approvals.

The acquisition builds on an existing strategic collaboration between the companies to develop X-ray solutions for semiconductor manufacturing. The partnership combines Onto Innovation's Ai Diffract analysis software with Rigaku's critical dimension small-angle X-ray scattering platforms.

Two customers have already selected the joint offering, which targets a market that external analysts estimate will exceed $1 billion within five years, according to the company's press release statement.

"Working closely with our customers, we see additional value in the insights X-ray technology can provide," said Mike Plisinski, chief executive officer of Onto Innovation. "Onto Innovation and Rigaku are currently demonstrating compelling results to customers, giving them the ability to aggregate and correlate data across platforms."

The investment will give Onto Innovation the right to nominate one director to Rigaku's board. The company expects to account for the minority investment under the fair value option method and will not consolidate financial results. Onto Innovation projects the investment will be accretive as of December 31, 2026.

Goldman Sachs is providing committed financing for the transaction, subject to customary conditions. Greenhill and Goldman Sachs are serving as financial advisors to Onto Innovation, while The Carlyle Group's affiliate Atom Investment, L.P. is selling the stake with Morgan Stanley as financial advisor.

Rigaku, founded 75 years ago, manufactures X-ray related technologies for industrial and scientific applications, including semiconductor process control.