Lam Research to acquire KLA-Tencor
US wafer processing and process control firms Lam Research and KLA-Tencor have agreed for Lam to acquire all outstanding KLA-Tencor shares in a cash and stock transaction.
The transaction values KLA-Tencor at approximately $67.02 per share, or $10.6 billion in equity value based on the closing stock price of Lam on October 20, 2015.
KLA-Tencor, based in Milpitas, provides process control and yield management solutions for the semiconductor, LED and other related industries. Lam, based in Fremont, sells semiconductor deposition, etch, and clean solutions.
"The pairing of Lam Research and KLA-Tencor brings industry leadership in process and process control together, accelerating our capability to address our customers' most difficult challenges as they scale to meet the market demands of lower power, higher performance, and smaller form factors," said Martin Anstice, Lam's president and chief executive officer.
"I strongly believe that this transaction represents a great outcome for all of KLA-Tencor's key stakeholders," said Rick Wallace, president and chief executive officer of KLA-Tencor. "The combined company will be uniquely positioned to work collaboratively with our customers to help them meet the challenges of FinFET, multi-patterning and 3D NAND development.
"Given the complementary nature of the two companies' product offerings and technologies as well as the lack of product overlap, the combination will create an industry leader with greater opportunities for our respective employees for professional development and growth. Lastly, this transaction will benefit our stockholders who will receive compelling upfront value, in addition to the opportunity to own a meaningful stake in an industry leader and participate in the upside potential created by the combination."
The new company will be called Lam Research Corporation.
