Semiconductor equipment maker MKS Instruments Inc said on Thursday it would acquire specialty chemicals group Atotech Ltd for around $ 5.1 billion to expand its chip manufacturing capabilities.
The cash and stock deal includes $ 16.20 in cash and 0.0552 of MKS common stock for each Atotech share, or a value per share of about $ 26, according to Reuters calculations. MKS, which has a market capitalization of approximately $ 10 billion, will finance the acquisition through cash and debt financing.
The offer represents a premium of around 10% over Atotech’s closing price on June 10, when Reuters announced that MKS had approached Atotech with a takeover offer.
The deal comes at a time when the chip industry faces a global semiconductor shortage that has shut down some auto production lines and its impact has been felt in other areas, including electronics. General public.
Atotech, backed by buyout firm Carlyle Group Inc, debuted on the U.S. public market in February at $ 17 a share. The company manufactures chemicals and equipment for printed circuit boards and semiconductors used in smartphones, home appliances and heavy machinery.
MKS approached Berlin-headquartered Atotech after losing to II-VI Inc in a bidding war for laser maker Coherent Inc in February.
“We want to participate in all profit pools for advanced electronics. Partnering with Atotech and having scale will allow us to be stronger in R&D engagement with our customers during downturns,” said MKS CEO John Lee in an interview.
The deal, which is expected to close by the fourth quarter of this year, will bring more recurring revenue streams and expand MKS ‘offerings in chipmaking through the addition of Atotech’s plating chemicals, especially on rigid circuit boards which are widely used on smartphones, laptops and cars, according to MKS.
Additionally, shares of Massachusetts-based MKS were down 3.7% to $ 171.35 on Thursday, while Atotech was down 1.45%.
Perella Weinberg Partners acted as financial advisor to MKS, while Credit Suisse acted as financial advisor to Atotech.