Varian is a supplier of ion-implantation equipment used by chip makers. Following the close of the transaction, Varian will operate as a business unit of Applied’s Silicon Systems and continue to be based in Gloucester, Massachusetts.
The acquisition will extend Applied’s offerings in wafer-fabrication equipment (WFE) with the addition of Varian’s ion-implantation products that complement Applied’s Silicon Systems’ products in the areas of transistor, interconnect, wafer-level packaging and patterning.
The merger received unanimous approval by the boards of directors of both companies. Under the terms of the merger agreement, Varian shareholders will receive $63 in cash for each share of Varian stock that they hold at the time of closing.
The closing of the acquisition is subject to customary conditions, including approval by Varian’s shareholders and review by US and international regulators.
Applied expects to fund the transaction with a combination of existing cash balances and debt. It has secured a commitment for a $2bn, one-year bridge-loan facility and plans to arrange for long-term debt financing. Applied also has in place an existing $1bn revolving credit facility.
Additional financing arrangements are expected to include replacement of the existing credit facility with a new four-year, $1.5bn revolving credit facility.
Five ways to prepare for your first day
If I may add my own personal Tip No. 6 it goes something like this: From time to time a more senior member of staff will start explaining something...