Applied Materials, a leading equipment supplier to the semiconductor industry, has taken the first steps in the $4.9 billion acquisition of Varian Semiconductor Equipment Associates, a leading supplier of ion implantation equipment used by chip makers around the world.
After closure, Varian will operate as a business unit of Applied's Silicon Systems Group and continue to be based in Gloucester, Massachusetts.
The acquisition will extend Applied's leadership in wafer fabrication equipment (WFE) with the addition of the technology leader in ion implantation - a critical step in integrated circuit manufacturing. Varian's ion implant products complement Applied's Silicon Systems Group's successful 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.
"Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent," said Mike Splinter, chairman and chief executive officer of Applied. "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. Combined, Applied and Varian will be better positioned to help our customers solve these complex challenges and deliver long-term value to shareholders."
"We believe the opportunity is very attractive for Varian's customers, employees and shareholders," said Varian's chief executive officer Gary Dickerson. "In addition to our combined strengths in the semiconductor space, Applied's proven capability to extend its technology to adjacent markets like solar and display can help unlock the tremendous potential of ion implantation in these markets."
The merger received unanimous approval by the boards of directors of both companies. Under the terms of the merger agreement, Varian shareholders will receive $63 in cash for each share of Varian stock they hold at the time of closing. The closing of the acquisition is subject to customary conditions, including approval by Varian's shareholders and review by US and international regulators.
