It is expected that the deal will add around $1.5m to Magma’s revenue for the current fiscal year.

Magma acquired Knights from parent firm FEI Co. FEI has offloaded Knights to focus on its core products. The company said its Knights subsidiary, which specializes in the development of yield and failure analysis software for semiconductor manufacturers, accounted for less than 2% of its overall revenue last year.

Knights will be absorbed into Magma’s Fab Analysis business unit and its technology integrated with Magma’s semiconductor design and manufacturing software.

Knight’s technology allows product engineers to analyze manufactured chips for systematic and parametric design defects. Its yield management software helps chipmakers to improve their design and manufacture process models.

Knights also has operations in India.

Hillsoboro, Oregon-based FEI said it will report a $2.8m pre-tax gain from the sale in its fourth quarter, which it expects will have an incremental impact on its previously issued EPS guidance of 17-22 cents.