Applied Materials Inc said Tuesday that it has agreed to acquire fellow semiconductor equipment firm Obsidian Inc in an all stock transaction valued at $137.5m, based on Friday’s closing price. The deal calls for Applied Materials to hand over 2.5 million shares of its common stock for all outstanding Obsidian stock, options and warrants, subject to certain restrictions based on the average trading price of Applied Materials stock prior to the closing.
Applied Materials says the deal will enable it to offer a complementary, slurry-free CMP (chemical mechanical polishing) technology to customers which supplements its existing slurry- based product, the Mirra CMP system. Obsidian’s fixed-abrasive technology is designed to reduce chip manufacturers’ costs for the purchase and disposal of chemical slurry. The acquisition has been approved by the boards of both companies and is expected to close by the end of June, subject to regulatory approval.
