Applied Materials completes acquisition of Varian Semiconductor

SANTA CLARA, USA: Applied Materials Inc. announced the successful completion of its acquisition of Varian Semiconductor Equipment Associates Inc. The acquisition of Varian enhances Applied's extensive portfolio with market-leading ion implantation technology, a market that represents an annual opportunity approaching $1.5 billion.

"Global demand for mobile devices with higher performance and longer battery life is fueling new innovations in semiconductor technology focused on the complex transistors at the heart of next generation chips," said Mike Splinter, chairman and CEO of Applied Materials. "The combination of Applied and Varian will create the industry leader in transistor technologies and allow us to partner with our customers to find innovative solutions for smaller, faster, power-efficient devices."

The new Varian Semiconductor Equipment business unit is based in Gloucester, MA, and is led by Bob Halliday, group vice president and general manager. Halliday reports to Dr. Randhir Thakur, executive VP and GM of Applied's Silicon Systems Group, which supplies semiconductor manufacturing technology to every chipmaker around the world.

"Varian's exceptional team and focus on device performance and yield improvement strongly complement Applied's capabilities," said Dr. Thakur. "Together, we can significantly enhance our value to customers in helping them with their most complex challenges to extend Moore's Law far into the future."

On November 10, 2011, Varian became a wholly-owned subsidiary of Applied. As a result, each outstanding share of Varian common stock (other than shares owned by Applied or Varian) was automatically converted into the right to receive $63.00 in cash (without interest).

Holders of Varian common stock will receive a letter of transmittal that will instruct them on how to receive the merger consideration. Under the terms of the merger agreement, Varian equity awards were either converted to the right to receive cash or assumed by Applied. The aggregate purchase price of the merger was approximately $4.2 billion, net of cash acquired.