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Brooks to Acquire FASTech The software side of things chelmsford, mass. -- Brooks Automation, which has been stepping up its bid to be a broadline fab and tool automation provider, signed a letter of intent to acquire FASTech Integration, a manufacturing execution software (MES) software provider. Financial terms of the deal were not disclosed. Brooks sees as its mission managing the factory floor from a material movement and information point of view, integrating materials handling tools and fab tools into the factory. The acquisition of privately-held FASTech is expected to provide Brooks with "a more seamless software integration between tool and MES, and get again into the information technology which brings value into managing the shop floor," says Robert Therrien, president/CEO of Brooks Automation. Within the last year, Brooks has been buttressing its claims as a broadline automation supplier. Having exited the atmospheric tools market to focus on vacuum tools in 1989, Brooks decided recently to reenter the atmospheric tool market. Brooks also will add to its portfolio in fiscal 1999, which begins Oct. 1, the interface between tool automation and factory automation. The company has developed its own Front Opening Unified Pod (FOUP), as well as atmospheric front ends, according to Mr. Therrien. Provided that the FASTech acquisition closes as planned this month, the new unit positions Brooks to directly compete in the factory automation software market. Lincoln, Mass.-based FASTech supplies MES systems (its flagship FactoryWorks product), cell control and equipment interface software for semiconductor manufacturing facilities, competing with the likes of Promis Systems and Consilium. The privately-held company had revenues of $22.3 million in 1997. The industry downturn appears to have brought the two companies to the negotiating table. Three years ago, Mr. Therrien approached FASTech President/CEO Jim Pelusi about a possible merger. Since then, the two companies have talked on and off, although "for the last two to three months with a lot more intensity and seriousness." Ultimately, economies of scale in a competitive, global, multi-billion-dollar industry proved to be a deciding factor. Mr. Therrien notes that it is hard to be a $30 million company serving billion-dollar fabs. The combination of Brooks, a roughly $100 million company, and FASTech should provide the scale necessary to service the global semiconductor industry. "The financial resources provided by Brooks should give FASTech the opportunity to accelerate its growth through internal development and acquisitions at a pace that will be difficult for traditional MES competitors to match," said Mr. Pelusi in a statement. Upon completion of the transaction, Mr. Pelusi will become a Brooks senior VP responsible for all software operations. Brooks went ahead with the acquisition in spite of the crippling semiconductor downturn. "This time is good to invest," says Mr. Therrien. "When times are good, everyone gets preoccupied with taking orders and shipping products and they don't put as much effort into executing on strategic opportunities. When you are busy growing trying to gain marketshare from your competitors, I guess you are less inclined to look over the horizon and see what is going to give you long-term competitive advantage. We see this as giving us long-term competitive advantage." |