Semiconductor equipment maker Applied Materials, Inc. (AMAT) said Monday that it has completed the acquisition of Semitool, Inc. (SMTL) following the all cash tender offer of $11 per Semitool share.
Santa Clara, California- based Applied Materials on completion of the tender offer, on December 18, had said that over 94% of the outstanding shares of Kalispell, Montana-based Semitool were validly tendered for the $11 tender offer which values Semitool for around $364 million.
Semitool is a supplier of electrochemical plating and wafer surface preparation equipment used by chip packaging and chip making companies. Applied Materials noted that this acquisition provides further opportunities in the high-growth wafer packaging market and provides complementary systems and technology for advanced semiconductor manufacturing.
Semitool merger with Applied Materials' wholly-owned subsidiary was effective on Monday. All the outstanding shares of Semitool which were not tendered were automatically converted into the right to receive cash of $11 per Semitool share.
As per the terms of the deal entered on November 17, Applied Materials' wholly-owned subsidiary, Jupiter Acquisition Sub, Inc., agreed to acquire Semitool for $11 per Semitool share in an all cash tender offer. Based on the fully diluted capitalization of Semitool, aggregate purchase price was around $364 million. Semitool will be operated as a part of Applied Material's Silicon Systems Group.
AMAT is currently trading at $13.80, up $0.18 or 1.32% on the Nasdaq. SMTL is currently trading at $11.01, down $0.03 or 0.27% on the Nasdaq.
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