Applied Materials Inc. said today that they will acquire Longmont, Colo.-based Applied Films, a supplier of thin film deposition equipment used in FPD manufacturing, for $464 million.

This acquisition will complement Applied Materials' thin film manufacturing technology capabilities and provide it  with an opportunity to expand into growing new markets, like in solar cells, flexible electronics and energy-efficient glass, according to the Santa Clara, Calif.-based comapny

Under the terms of the agreement approved by both boards of directors, Applied Materials will pay $28.50 per share in cash for each outstanding share of Applied Films, which represents a total purchase price of approximately $464 million, or approximately $303 million net of Applied Films' existing cash and marketable securities. In addition, Applied Materials will assume Applied Films' outstanding stock options and other equity awards.

"The acquisition of Applied Films expands our flat panel business to offer color filter products, and opens the fast-growing solar market for us," said Mike Splinter, president and CEO of Applied Materials, in a statement. "Both companies have a strong history of developing new and innovative technologies. Together, we expect to speed the development and availability of new products for a variety of emerging applications."

Applied Films' physical vapor deposition(PVD)-based flat panel display products align well with Applied Materials' existing FPD thin film deposition capabilities, said the companies. Applied Materials is a supplier of chemical vapor deposition(CVD) and test equipment for manufacturing the display's transistor layer, while Applied Films has developed expertise in large-area PVD applications.

"The acquisition is also anticipated to provide growth opportunities for Applied Materials in solar cell as well as flexible electronics applications where our combined knowledge and capabilities will enable us to bring a new level of expertise to these expanding markets," said Mark Pinto, senior VP and CTO of Applied Materials, in the statement.

"In solar cell manufacturing, we expect to help customers deliver higher levels of output at lower production cost -- a critical step to making alternative forms of clean energy more available and affordable," he continued. "By combining Applied Films' existing platforms with Applied Materials' broad process portfolio and global customer relationships, we can also accelerate a number of new applications for electronics on flexible substrates."

Completion of the transaction is subject to approval of Applied Films' shareholders and receipt of regulatory approvals. Applied Films will file a proxy statement in connection with the proposed merger, which will be mailed to its shareholders. The companies expect to close the transaction during Applied Materials' Q3.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved