Elron Electronic Industries Ltd. (TASE: ELRN), the high-tech investment arm of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, today notified the TASE that talks for the sale of its 19% stake in Jordan Valley Semiconductors Ltd. to Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI) have broken down. In May, Elron announced the talks, but denied reports that value of Jordan Valley Semiconductors for the deal was $50-60 million.
Jordan Valley Semiconductors, founded in 1995 by CEO Isaac Mazor, develops X-ray based metrology solutions used in the manufacture semiconductors. Nova also develops metrology solutions, and talk about a merger of the companies has existed for a long time.
Jordan Valley Semiconductors' solutions are critical for the semiconductor industry, as technological development of silicon wafers at ever smaller nanometer-scales at every higher costs drive the need for better metrology solutions, such as those offered by the company. The value of Jordan Valley Semiconductors in Elron's books has steadily risen in tandem, from $50 million at the end of 2010 to $75-100 million at an investors' conference a week ago.
Elron put its stake in Jordan Valley Semiconductors up for sale in 2010. In today's statement, it said, "Jordan Valley Semiconductors and its shareholders continue to review possible transactions," suggesting that a strategic move of some kind will happen soon.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2012
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