NEW YORK — Lam Research is buying KLA-Tencor Corp. for about $10.6 billion, creating a huge player in the semiconductor sector that will rival Applied Materials Inc.
The combined company, to be called Lam Research Corp., will have a market capitalization of around $19 billion, about equal to that of Applied Materials, and says it will serve 42 per cent of the wafer fabrication equipment market when the deal closes in the middle of next year.
The offer, for $67.02 per share, marks a 24 per cent premium to the closing price for KLA-Tencor Corp. on Tuesday. Lam says it will book $250 million in annualized savings within two years.
Shares of Lam Research rose 2 per cent before the opening bell Wednesday. Both companies are based in California.
The Associated Press