Applied Materials to buy Varian Semiconductor for $4.9 billion (Reuters)
(Reuters) – Chip equipment maker Applied Materials snapped up a care to acquire rival Varian Semiconductor Equipment Associates Inc for $4.9 1000000000 in change as it looks to garner up newborn profession to meet the crescendo demand for smartphones and solar equipment.
The $63 per care deal represents a 55 proportionality premium to Varian stock's closing price on Tuesday.
Varian provides ion implantation equipment to chipmakers.
"In addition to our combined strengths in the conductor space, Applied's proven capability to extend its profession to conterminous markets like solar and pass crapper support unlock the large possibleness of ion implantation in these markets," Varian Chief Executive Gary Dickerson said in a joint statement.
Intel, the directive chipmaker, is cod to attain an announcement later on Wednesday, which is due to colligate to its newborn 22 nanometer production process cod to start in November.
The Varian care is due to add to Applied Materials' adjusted earnings in the first year.
Applied expects to fund the transaction with a compounding of change on assistance and debt. It has secured a dedication for $2 billion, one-year denture loan artefact unconnected from $1 1000000000 undrawn from its revolving assign facility.
Varian shares winking at $40.55 on Tuesday, while Applied shares winking at $15.24 on Nasdaq. (Reporting by Himank Sharma in Bangalore; Editing by Gopakumar Warrier)
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