Why Are CMC Materials Shares Trading Higher Premarket?

Entegris Inc ENTG has agreed to acquire CMC Materials Inc CCMP in a cash and stock transaction with an enterprise value of $6.5 billion.

• CMC shareholders will receive $133.00 in cash and 0.4506 shares of Entegris for each share of CMC, implying a 35% premium over CMC's December 14 closing price. 
• Entegris shareholders will own 91% of the combined company, and CMC shareholders will own 9%.
• CMC is a leading supplier of advanced materials primarily for the semiconductor industry. The addition of CMC's leading CMP portfolio will broaden Entegris' solutions set, creating a comprehensive electronic materials offering.
• Entegris will finance the transaction with a combination of equity, new debt, and cash on hand.
• Entegris held $475.8 million in cash and equivalents as of October 2. It had $936.7 million in long-term debt.
• Price Action: CCMP shares traded higher by 26.1% at $184 in the premarket session on the last check Wednesday.