Alcatel Optronics has sold its Netherlands operation in a Management Buy Out (MBO). The non-telecom MEMS and planar design software operation was the result of two start-ups bought by Kymata prior to its being acquired in its turn by Alcatel Optronics. The new entity, called C2V, is independently owned and financially supported by Greenfield Capital Partners, a Dutch private equity firm. A C2V team will be dedicated to Alcatel Optronics for a one and a half year period on a planar design R&D programme.

Metrology and imaging specialists Veeco Instruments and FEI have signed a
definitive merger agreement. FEI will become a wholly-owned subsidiary of
Veeco. The company will be renamed Veeco FEI Inc.
FEI stockholders will receive 1.355 shares of Veeco common stock for each
share of FEI they own. Based upon FEI's approximately 32m diluted shares
outstanding, the deal has a value of $1bn. Savings of $8-10m on an
annualised basis are expected to result from integration of the companies'
sales and support networks, supplier management, and manufacturing and
administrative efficiencies.
Vahe A Sarkissian - FEI's chairman, president and CEO - will become chairman
of the board and chief strategy officer of Veeco FEI. Veeco's chairman,
president and CEO, Edward H. Braun, will remain CEO and president. Veeco FEI
will have 2900 employees at facilities in North America, Europe, Japan and
the Asia-Pacific region.

Conexant Systems has combined its digital imaging business with software
developer Zing Network. The new company, Pictos Technologies, will provide
semiconductors and embedded camera software for digital still cameras
(DSCs), mobile imaging devices, and other consumer products that can share
digital images with each other. Pictos will have headquarters in California
with 100 employees. Conexant is a major shareholder in the new company.

Brooks-PRI Automation has completed the acquisition of HERMOS Informatik
GmbH based in Mistelgau, Germany, from its parent, the HERMOS Group.
"The acquisition of HERMOS Informatik now enables Brooks-PRI to directly
offer RF identification systems for tracking material in a semiconductor
fab," reports Robert J Therrien, president and CEO of Brooks-PRI Automation.
"Virtually all new 300mm semiconductor fabs are transitioning to RF
technology from the infrared ID systems used in 200mm fabs."