Chip-equipment manufacturer, Applied Materials, is purchasing Varian Semiconductor Equipment Associates for about $4.9 billion. Varian will operate as a business unit of Applied’s Silicon Systems Group and continue to be based in Massachusetts after the deal. Varian shareholders will get $63 in cash for each share of Varian stock they hold at the time of closing.
Applied is expecting to finance the deal with a combination of existing cash balances and debt. It has secured commitment for a $2 billion, one-year senior bridge loan facility and may arrange for long-term debt financing. The deal is awaiting approval from Varian’s shareholders and a review by U.S. and international regulators.
Click here for the release from Applied Materials.