MKS Instruments Inc. MKSI, -0.21 percent announced on Thursday that it has struck a deal to buy Atotech Ltd. ATC.
in a cash-and-stock transaction with a $5.1 billion equity value and a $6.5 billion enterprise value In its first year, the purchase is estimated to generate $3.8 billion in pro forma annual revenue and enhance MKS’ non-GAAP net earnings per share. Within 18 to 36 months of closing, MKS plans to realize $50 million in annualized cost synergies. The transaction is likely to finalize in the fourth quarter of this year. MKS is a technology business that strives to enable advanced processes and increase productivity, while Atotech is a company that focuses on process chemicals. In a statement, MKS CEO John T.C. Lee said, “By combining leading capabilities in lasers, optics, motion, and process chemistry, the combined company will optimize the PCB Interconnect, a significant enabling point of next-generation advanced electronics that represents the next frontier for miniaturization and complexity.” MKS will pay $16.20 in cash and 0.0552 of a share of its ordinary stock for each Atotech share under the terms of the agreement. On the announcement, Atotech shares were up 3.8 percent in premarket trading, while MKS was up 0.9 percent./n
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