When private equity concerns see a good thing, they tend to move fairly quickly to make it their own, and in their own image. In some instances, however, the loss of control, associated with an equity company takeover, is not in the best interest of what is considered valuable. Balancing what has worked against what may appear to be a large jump forward can be at odds with what is best for investors and the company. Having a strong board in place, to make the tough decisions for the company, often means that the equity firms were right in their recognition of the company, but, possibly not in their own ability to capitalize on it.
Asyst Technologies Inc., a developer/manufacturer of manufacturing automation equipment and software, works to offer semiconductor and flat panel display manufacturing systems primarily in the United States. Lowering the possibility of manufacturing defects and increasing efficiencies is achieved through automated product transfer devises within the manufacturing process. Lower defect rates are largely achieved through the enabling of systems to operate efficiently with limited access. To offer custom flexibilities and enhanced productivity tools the company also provides necessary software and support for efficient communication processes between manufacturing steps.
The company has had tremendous successes with its manufacturing and support systems, noting nothing but raves from its customer base. These successes, however, have not gone unnoticed by private equity firms. In recent months, the company has been approached by at least two private equity firms wanting to take the company private, a move the company has rejected. Currently, the company feels that it can serve its customers and share holders more profitably and efficiently by remaining publicly held. Generally, this bodes well for investors as the company indicates, through its refusal, that it feels it can do better than the $6.00 per/share upper end offer of the equity firms.
For the most part, this would appear to be a correct thought. The company’s software systems are currently geared for chip and flat panel manufacturing systems. There is little reason why these same software systems could not be retooled for other manufacturing processes with a similar manufacturing profile. As the company becomes more comfortable with its chosen marketplace, there is a good possibility that it will begin to look elsewhere for new markets to enter. What remains to be seen is which, when and where. From a stable balance sheet to a wise management team in place, it appears that it will only be a matter of time before the company expands its reach.
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