Applied Materials Buying Varian Semi For $4.9 Billion
SANTA CLARA (CBS/AP) — Applied Materials Inc. said it will buy Varian Semiconductor Equipment Associates Inc. for $4.9 billion, gaining access to a leading supplier of ion implantation equipment used by chipmakers.
Applied, based in Santa Clara, is paying $63 per share in cash, marking a 55.4 percent premium to Varian’s closing price of $40.55 on Tuesday.
Varian, based in Gloucester, Mass., makes equipment that lowers costs and improves the productivity of its customers, Applied Materials said.
Applied expected the deal to boost its adjusted profit in the first year after closing. It planned to finance the purchase with existing cash and debt.
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