Moody's affirms Lam

Moody's Investors Service said it affirmed Lam Research Corp.'s Baa1 long-term rating following news that the company agreed to buy Novellus Systems, Inc. for $3.3 billion in an all-stock transaction.

Lam also announced a $1.6 billion share repurchase authorization, which Lam expects to execute over the 12 months following the close of the transaction, making the acquisition effectively funded with half stock and half cash, the agency said.

The outlook is stable.

The acquisition combines Lam's leading market position in the etch- and clean-semiconductor equipment sector with Novellus's No. 2 position in the roughly $8 billion deposition market, providing a complementary equipment offering to the company's semiconductor chip-maker customer base, Moody's said.

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