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 offerings.
The cash-and-stock deal includes $16.20 in cash and 0.0552 of an MKS common stock for each Atotech share, or a per share value of about $26 according to Reuters calculations, reports Reuters.
The offer represents a premium of about 10% to Atotech’s closing price on June 10, when Reuters reported MKS had approached Atotech with an acquisition offer.
The deal comes at a time the chip industry has been dealing with a global shortage of semiconductors that has shuttered some auto production lines and its impact has been felt in other areas, including consumer electronics.
Atotech, backed by buyout firm Carlyle Group Inc, made its U.S. public market debut in February. The company makes chemicals and equipment for printed circuit boards and semiconductors that are used in smartphones, appliances and heavy machinery.
The deal, expected to close by the fourth quarter of this year, will expand MKS’ offerings in chip manufacturing through the addition of Atotech’s plating chemicals.
MKS, which has a market capitalization of about $10 billion, made a $6 billion offer for laser maker Coherent Inc in February, before losing out to II-VI Inc’s bid for the company.
Andover, Massachusetts-based MKS’ shares were up nearly 1% at $179.50 on Thursday, while Atotech was down marginally in premarket trading.
Perella Weinberg Partners acted as MKS’ financial adviser, while Credit Suisse was Atotech’s financial adviser.
