Onto Innovation Enhances Portfolio with Semilab Acquisition

On November 17, 2025, Onto Innovation Inc. (NYSE: ONTO) announced the successful completion of its acquisition of key product lines from Semilab International. Valued at approximately $495 million, this strategic move strengthens Onto’s position within the semiconductor materials analysis sector by integrating three advanced product lines: FAaST®, CnCV®, and MBIR. These additions significantly enhance the company's capabilities in inline wafer contamination monitoring, materials characterization, and unique surface charge metrology.

Mike Plisinski, CEO of Onto Innovation, expressed enthusiasm about the acquisition, stating, “We’re thrilled to welcome the talented team of engineering, support, and applications, and all other functions that have made these products so successful to Onto Innovation.” He further emphasized that Semilab's existing customers can expect uninterrupted service, bolstered by Onto’s global support and manufacturing infrastructure.

This acquisition is expected to fortify Onto Innovation’s materials portfolio in rapidly growing sectors such as advanced logic, AI-enabling advanced packaging, and power semiconductors. Plisinski highlighted the unique advantage this merger offers: “The combination of Semilab’s products alongside Onto’s OCD or defect inspection capabilities will enable more accurate electrical defectivity location and characterization, not previously available in the industry.”

As part of its fourth-quarter financial outlook, Onto Innovation updated its revenue guidance, projecting a range of $258 million to $275 million. The acquisition is anticipated to contribute approximately $8 to $10 million in revenue through January 3, 2026. However, it’s noteworthy that the majority of fourth-quarter revenue was recognized prior to the acquisition close due to previously committed customer shipment dates.

Excluding the effects of purchase accounting, the acquisition is expected to be immediately accretive to margins, contributing an estimated $0.02 to $0.04 to diluted earnings per share in the fourth quarter. Looking ahead, Onto Innovation anticipates that the acquired product lines will generate around $120 million in revenue for the year 2026, with a projected increase in revenue towards the latter half of the year.

The acquisition aligns with Onto Innovation’s growth strategy, targeting high-growth segments within the semiconductor industry. The integration of Semilab's advanced technologies is expected to enhance the company's competitive edge, particularly in addressing electrical defectivity challenges that can lead to latent defective devices entering the market. This capability is crucial in delivering higher value to customers, thereby reinforcing Onto’s market position amidst increasing competition.

In connection with this acquisition, Barclays Capital Inc. acted as the financial advisor to Onto Innovation, while Simpson Thacher & Bartlett LLP provided legal advisory services. Semilab was supported by Needham & Company, LLC and Hill, Ward & Henderson P.A., ensuring a structured and effective transaction process.

The acquisition of Semilab’s product lines marks a significant milestone for Onto Innovation, poised to enhance its capabilities and market position in the semiconductor industry. As the company prepares to integrate these advanced technologies and ramp up revenue contributions in the coming quarters, stakeholders will be keenly observing the impacts on its operational performance and growth trajectory. Onto Innovation remains committed to optimizing customer outcomes through innovation and strategic expansion in a rapidly evolving market landscape.