Summary
Applied Materials, Inc. (AMAT) has announced the successful completion of its acquisition of Varian Semiconductor Equipment Associates, Inc. (Varian) on November 10, 2011. This strategic move involved a merger where Varian now operates as a wholly-owned subsidiary of Applied Materials. Investors should note that the acquisition was conducted through a merger subsidiary and Varian shareholders received $63 in cash per share, totaling approximately $4.2 billion net of cash acquired. The funding for this significant transaction was a combination of Applied Materials' existing cash reserves and the proceeds from a $1.75 billion senior unsecured note issuance in June 2011. While financial statements for the acquired entity and pro forma information will be filed later, the immediate impact is the consolidation of Varian's operations under Applied Materials.
Key Highlights
- 1Applied Materials completed the acquisition of Varian Semiconductor Equipment Associates, Inc. on November 10, 2011.
- 2The acquisition was structured as a merger, with Varian becoming a wholly-owned subsidiary of Applied Materials.
- 3Varian shareholders received $63 in cash per share for their common stock.
- 4The total value of the acquisition was approximately $4.2 billion, net of cash acquired.
- 5The transaction was funded through a mix of existing cash and proceeds from a $1.75 billion senior unsecured note issuance in June 2011.
- 6Certain Varian employee equity awards were converted to cash or assumed by Applied Materials.
- 7Detailed financial statements of Varian and pro forma financial information will be filed in an amendment to this report.