FREMONT, Calif., Dec. 14 (UPI) -- Lam Research Corp., based in California, said it has agreed to take over Novellus Systems Inc. in an all-stock transaction valued at about $3.3 billion.
Lam also announced Wednesday a $1.6 billion common stock repurchase program.
The combined semiconductor manufacturing equipment businesses will use the Lam Research name, with Martin Anstice as chief executive office as of Jan. 1.
Novellus stockholders will receive 1.125 shares of Lam Research common stock for each share of Novellus stock in a tax-free exchange. That pegs Novellus' stock value at $44.42 per share, a 28 percent premium over its Wednesday closing price of $34.70.
"This strategic combination positions Lam Research to lead the development of next-generation semiconductor manufacturing technology and productivity solutions at a time when growing semiconductor demand and increased device complexity are creating significant business opportunities," Lam Research Chief Executive Officer Steve Newberry said. "Novellus' strong capabilities and market leadership in deposition and surface preparation technologies enable Lam to become more deeply entrenched in critical semiconductor manufacturing processes that are important to our customers."
Novellus Chairman Richard Hill called the takeover "great news for our customers, investors and employees."
"The complementary skills, technologies and product offerings of Lam and Novellus will create a strong platform for delivering innovative and cost-effective solutions," Hill said. "For our investors, it presents an ability to participate in the combined company's future value creation potential."
