By Lisa Kerner
Charlotte, N.C., Nov. 17 - Semitool, Inc. agreed to be acquired by Applied Materials, Inc. for $11 per share in an all-cash tender offer valued at $364 million, it was announced on Tuesday.
The offer is conditioned on the tender of at least two-thirds of Semitool's outstanding stock on a fully diluted basis, according to a form 8-K filing with the Securities and Exchange Commission.
Semitool directors and executive officers holding approximately 32% of Semitool's outstanding common stock have agreed to tender their shares, the filing said.
Both companies' boards of directors approved the merger agreement, and Applied Materials expects to close the offer by the end of 2009.
Once the offer is complete, Applied Materials will acquire any remaining shares of Semitool through a second-step merger.
Semitool will operate as a business unit of Applied Materials' silicon systems group.
"The semiconductor industry recovery is being fueled by global demand for mobile devices such as smart phones, notebook PCs and portable media players for music, gaming and books," Applied Materials chairman and chief executive officer Mike Splinter said in a news release.
"With this acquisition, Applied will help the world's leading chip makers create ever-smaller and more powerful devices," Splinter said.
Semitool, based in Kalispell, Mont., supplies electrochemical plating and wafer surface preparation equipment to chip-packaging and chip-making companies.
Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.
| Acquirer: | Applied Materials, Inc.
|
| Target: | Semitool, Inc.
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| Announcement date: | Nov. 17
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| Transaction total: | $364 million
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| Price per share: | $11.00
|
| Expected closing: | End of 2009
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| Stock price for target: | Nasdaq: SMTL: $8.40 on Nov. 16
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