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.