Applied Materials Expected to Buy Varian Semiconductor
Chip-equipment manufacturer Applied Materials Inc. is expected to announce an agreement to acquire Varian Semiconductor Equipment Associates Inc. for about $5 billion in cash, a person familiar with the matter said, betting that the demand for popular gadgets such as smartphones and energy-efficient technology will drive growth at a combined company.
Santa Clara, Calif.-based Applied Materials is expected to pay $63 a share for Varian, the person said. The price represents a 55 percent premium to Varian’s closing price of $40.55 a share on Tuesday on the Nasdaq stock exchange, giving it a market value of just over $3 billion.
The transaction is one of the largest recent deals between companies that make equipment used in the manufacture of integrated circuits for electronic devices such as flat-screen TVs and solar panels.
