8-KMaterial AgreementsRegulation FDExhibits & Filings

APPLIED MATERIALS INC /DE 8-K Report, Material Agreement (Nov 19, 2007)

Filed November 19, 2007For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) announced on November 19, 2007, that it has entered into a Share Purchase Agreement to acquire Baccini S.p.A., a privately-held Italian company specializing in automated metallization and test systems for crystalline silicon photovoltaic cells. This strategic acquisition, valued at €225 million (approximately $330 million in cash), is expected to significantly bolster AMAT's presence in the rapidly growing solar energy sector by integrating Baccini's technology into its product offerings. The transaction involves a cash payment with a portion held in escrow for one year and another portion contingent on key employee retention for up to two years post-closing. The acquisition is subject to customary closing conditions, including obtaining necessary non-U.S. regulatory approvals. This move signals AMAT's commitment to expanding its portfolio into renewable energy technologies.

Key Highlights

  • 1Applied Materials (AMAT) to acquire Baccini S.p.A., a leading supplier of automated metallization and test systems for photovoltaic cell manufacturing.
  • 2Acquisition price is €225 million (approximately $330 million) in cash.
  • 3Baccini will become a wholly-owned subsidiary of Applied Materials upon closing.
  • 4The deal expands AMAT's strategic focus into the solar energy sector.
  • 5A portion of the purchase price is subject to escrow and key employee retention conditions.
  • 6The transaction is subject to regulatory approvals and other customary closing conditions.

Frequently Asked Questions

The acquisition of Baccini S.p.A. is a strategic move by Applied Materials to significantly expand its presence and offerings in the growing solar energy market. Baccini's expertise in automated metallization and test systems for crystalline silicon photovoltaic cells is expected to complement AMAT's existing technology and provide a stronger platform for growth in renewable energy solutions.

Applied Materials will pay an aggregate of €225 million (approximately $330 million) in cash for Baccini. A portion of this amount will be placed in an escrow account for one year to cover potential seller obligations, and another portion is contingent upon the continued employment of specified key employees for up to two years after the closing.

The closing of the Baccini acquisition is contingent upon the satisfaction or waiver of customary closing conditions. These include, but are not limited to, the receipt of certain non-U.S. regulatory approvals.

Upon the closing of the share purchase, Baccini S.p.A. is expected to become a direct or indirect wholly-owned subsidiary of Applied Materials, indicating integration into the parent company's operations rather than independent operation.