This article comprises a case and teaching note regarding the acquisition of a capital equipment business from a large company by a small nanotechnology materials firm. Specifically, in 1981, Ferrofluidics, a nanotechnology components manufacturer operating in New Hampshire, vertically integrates by acquiring Varian's silicon crystal puller division. Ferrofluidics intends to improve the Varian puller. However, there is little overlap between the firm's materials-based capabilities and competencies, and the capabilities and competencies required for the fabrication & assembly and after-sales service of the puller. Thus the case seeks to introduce students to the discipline of intelligently choosing a new project, here in the context of commercializing a novel nanotechnology component through forward or vertical integration into an oligopolistic competitive environment. The case is appropriate for a general management of technology core class, a technology strategy class, a class on project management, a class of corporate entrepreneurial action or a class on technology entrepreneurship. The teaching note provides the instructor with the opportunity to introduce students to the Strategy Technology Firm Fit Audit, core competencies, models of innovation, forward or vertical integration, the Technology Market Matrix, the technology lifecycle and winner-take-all-or-most.