- Chipmaker Applied Materials (AMAT) will merge with Tokyo Electron in an all-stock combination that values the combined firm at $29B.
- "The combination will accelerate our momentum for profitable growth, increase the value delivered to shareholders and create great opportunities for employees," AMAT CEO Gary Dickerson says.
- The terms of the deal call for AMAT shareholders (who will own 68% of the new firm) to receive 1 share of the combined company for every AMAT share they hold.
- Run-rate operating synergies are expected to be $250M by the end of the first year and $500M in three years.
- Taking into account a planned $3B buyback, the deal will be EPS accretive at the end of the first fiscal year after closing. (PR)
- AMAT +3% premarket.