Global PTW Holdings – which refurbishes front-end production equipment of semiconductors – has acquired a significant interest in Singapore-based Jesse Technology using the $20-million growth capital it raised from several investors, according to a press release.
Global PTW raised capital on July 25 from Daiwa ACA APAC Growth I and II LP, private equity funds managed by ACA Investments – an investment management firm backed by Daiwa Securities Group, as well as the Japan Southeast Asia Finance Fund III LP, a debt/equity hybrid fund managed by the Development Bank of Japan, and Risa Partners.
Part of the $20 million raised will be used for the acquisition of Jesse Technology, while the remaining funds will be channelled into PTW’s working capital and capital expenditure.
The partnership includes primary and secondary capital components. The funds will allow PTW to expand its operations through mergers and acquisitions in Southeast Asia and Japan.
Its partnership with Jesse Technology will enable both companies to expand their service offerings across the customer portfolios.
The deal marks a consolidation in the niche and fragmented semiconductor refurbishing market.
Founded in 2014, Jesse Technology deals with the maintenance of semiconductor equipment, laser repair and parts trading. Prior to this acquisition, the firm was fully owned by its founder.
PTW, which was set up in 2015, is in the business of refurbishing front-end semiconductor production tools to enable silicon producers to ramp up their production levels.
PTW investor ACA Investments has been injecting capital into companies in Singapore – where it is based – and in other Southeast Asian countries through its two growth funds backed by Daiwa.
Its portfolio companies include health and wellness management platform Health Metrics, temporary staffing service provider Greensafe and price comparison platform iprice group.
Singapore-based corporate advisory TOP2 advised PTW on the transaction.