Opal began operations as an independent company after its spin-off from Optrotech exactly a decade ago. Things were not easy at the beginning, and company general manager Rafi Yizhar relates that in 1990-91 the company was on the verge of bankruptcy. Since then, the company has made giant strides. Today, in Israel’s biggest high tech deal to date, US concern Applied Materials paid $175 million or $18.5 per share, for Opal.
Friday, Opal traded at $12 on the NASDAQ, bringing the shareholders’ premium compared to market price to 50%. Applied Materials will tender an offer to all Opal shareholders; according to US law the company must receive a response from over half. In a three-way agreement between Applied Materials, Opal and Orbot Instruments, the US company was given the green light by 49% of shareholders, requiring only 2% more from public shareholders.
The shareholders who have already signed the agreement with Applied Materials are Clal Electronics which holds 31% of Opal, Orbotech (the result of a 1992 merger between Orbot Systems and Optrotech) which holds under 14%, and company managers including Yizhar who owns 3.5%. Clal Electronics will receive $35 million and report capital gains of $15 million. Orbotech will sell its shares for $15 million and report $8 million capital gains.
Opal is a leading supplier of CD-SEM systems for use in semiconductor manufacturing. CD-SEM systems use scanning electron microscopes (SEMs) to measure certain critical dimensions of integrated circuits at various stages of the manufacturing process.
Opal's revenues have grown from $24.5 million in 1994 and $44.7 million in 1995 to a projected $60 million for 1996. Sales for the first nine months of 1996 were $48 million.
Opal was incorporated as a US company in 1986 but this is strictly a formality. Out of 300 company employees, 250 work in Israel. Clal Electronics, which holds 31% of the company, was heavily involved in the company’s operations, injecting cash in times of crisis.