BILLERICA, Mass. (AP) — Entegris Inc. has reached a deal to buy fellow semiconductor materials maker ATMI in a deal worth about $1.15 billion.
The deal announced Tuesday brings together two key suppliers in the semiconductor industry to create a leader in advanced process materials, contamination control and wafer handling, Entegris said.
The company expects the acquisition to result in annual cost savings of about $30 million and immediately boost its adjusted earnings per share. It plans to fund the all-cash deal with a combination of existing cash and additional debt.
The deal remains subject to regulatory and shareholder approvals, along with other customary closing conditions.
Under the terms of the agreement, Entegris will pay $34 in cash for each ATMI share. The price represents a 26 percent premium over the company's Monday closing stock price.
The companies said the deal was worth about $850 million net of cash acquired, including the net cash proceeds from the sale of ATMI's LifeSciences business of $170 million.