Applied Materials To Buy Varian Semiconductor Equipment Associates For $4.9 billion; Varian Semiconductor Shares Jump In Pre-Market Trading

Applied Materials Inc AMAT agreed to acquire Varian Semiconductor Equipment Associates Inc VSEA for about $4.9 billion. Applied Materials will buy VSEA for $63 per share in cash, representing a 55% premium to Varian's closing price on Tuesday. Applied Materials is expecting the deal to lift its adjusted earnings in the first year. "Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent," said Mike Splinter, chairman and chief executive officer of Applied. AMAT shares gained 0.07% to $15.25 in after-hours trading, VSEA shares surged 50.43% to $61.00 in pre-market trading. Read more from Benzinga's Company news.