MKS Instruments To Buy Atotech For $5.1 Billion: Report

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  • MKS approached Atotech after it lost out to II-VI Inc in a bidding war for laser maker Coherent Inc in February
  • MKS, which has a market capitalization of about $10 billion, will fund the acquisition through cash and debt financing

As per a Reuters report, semiconductor equipment maker MKS Instruments Inc said on Thursday it will buy specialty chemicals group Atotech Ltd for about $5.1 billion to expand its chip manufacturing capabilities. As per Reuters calculations, the cash-and-stock deal includes $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech share, or a per share value of about $26. MKS, which has a market capitalisation of about $10 billion, will fund the acquisition through cash and debt financing.

Makes chemicals and equipment for printed circuit boards and semiconductors

The report added that Atotech, backed by buyout firm Carlyle Group Inc, made its U.S. public market debut in February at $17 per share. The company makes chemicals and equipment for printed circuit boards and semiconductors that are used in smartphones, appliances and heavy machinery. MKS approached Atotech after it lost out to II-VI Inc in a bidding war for laser maker Coherent Inc in February.

MKS Chief Executive John Lee said in an interview that they want to participate in all the profit pools for advanced electronics. Partnering with Atotech and having the scale is going to allow us being stronger in committing R&D to the customers throughout downturns.

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