Mergers and Acquistions News
Categories: Semi-Conductors
December 16th 2011, 16:02PM
Lam Research Corp has announced it has entered a merger agreement to acquire smaller rival Novellus Systems for a $3.3 billion (£2.1 billion) all-stock transaction.
The two companies, which will trade as Lam Research Corp, are two of the biggest manufacturers of semiconductor equipment in the world and the move will boost Lam's market position in brand new semiconductor technologies, as well as increase its revenues.
Novellus Systems specialises in thin-film deposition and surface preparation technologies, while Lam Research leads the way in etch and single-wafer clean equipment.
Steve Newberry, vice-chairman and chief executive of Lam Research, said: "This strategic combination positions Lam Research to lead the development of next-generation semiconductor manufacturing technology and productivity solutions at a time when growing semiconductor demand and increased device complexity are creating significant business opportunities."
The M&A deal will include a $1.6 billion common stock repurchase programme, to be executed over the first 12 months of the acquisition. The deal is also expected to lead to total cost synergies of around $100 million annually by the end of 2013.
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