Leading chip making equipment company Applied Materials Inc. (Santa Clara, Calif.) has made an agreement to purchase Semitool Inc. (Kalispell, Mont.) for $364 million in cash. This is based on an $11 per share tender offer. Semitool is a supplier of electrochemical plating and wafer surface preparation equipment.
The boards of directors of both companies have approved the terms. The deal requires at least two-thirds of Semitool's outstanding stock to be tendered and also depends on regulatory approval. Directors and executive officers of Semitool holding approximately 32 percent of Semitool's outstanding common stock have entered into agreements to tender their shares. The deal is expected to close by the end of calendar 2009.

The acquisition would make Applied the equipment leader in two fast-growing segments: advanced packaging and the memory industry's conversion to copper.

"The semiconductor industry recovery is being fueled by global demand for mobile devices such as smart phones, notebook PCs and portable media players for music, gaming and books," said Mike Splinter, chairman and CEO of Applied Materials, in a statement. "With this acquisition, Applied will help the world's leading chip makers create ever-smaller and more powerful devices."

"As part of Applied Materials, we can accelerate the global adoption of the technologies Semitool has developed," said Ray Thompson, chairman of Semitool, in the same statement. "With this agreement, we are providing our employees with a strong future and our stockholders with exceptional value."

By: DocMemory
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