Applied Materials Inc. and Varian Semiconductor Equipment Associates Inc. have signed a definitive merger agreement under which Applied will acquire Varian for $63 per share in cash for a total price of approximately $4.9 billion on a fully diluted basis.
Varian is a supplier of ion implantation equipment for PV manufacturing and other markets. Following the close of the transaction, Varian will operate as a business unit of Applied's silicon systems group and continue to be based in Gloucester, Mass., according to Applied.
According to the companies, the acquisition will extend Applied's leadership in wafer fabrication equipment with the addition of the technology leader in ion implantation – a critical step in integrated circuit manufacturing. In addition, Varian's technology has strong potential to extend into adjacent markets, including solar PV.
The merger received unanimous approval by the boards of directors of both companies. The closing of the acquisition is subject to customary conditions, including approval by Varian's shareholders and review by U.S. and international regulators.