Tuesday, May 3, 2011

Applied to Acquire Varian, Extending Silicon Wafer Expertise

Applied Materials has agreed to acquire Varian Semiconductor Equipment Associates for $63 per share in cash for a total price of approximately $4.9 billion on a fully-diluted basis. The price represents a 55 percent premium to the closing price on May 3rd. Both companies supply equipment for semiconductor manufacturing.

Applied said the deal provides it with deep expertise in ion implantation - a critical step in integrated circuit manufacturing, thereby extending its leadership in wafer fabrication equipment (WFE). This complements Applied's Silicon Systems Group's suite of products in the areas of transistor, interconnect, wafer level packaging and patterning. The combined company will provide customers a broad product portfolio for transistor formation, enabling the manufacture of higher performance chips particularly for mobile applications with faster speeds and longer battery life. In addition, Varian's technology has strong potential to extend into adjacent markets, including solar, display and light emitting diodes.

"The pace of product innovation is accelerating, requiring devices that are more mobile, more connected and more personalized. These global trends are driving our customers to find new solutions for smaller transistors and faster and higher performance chips, while pushing the boundaries of innovation," said Mike Splinter, chairman and chief executive officer of Applied.

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