Applied Materials to buy Varian for $4.9 billion

(Reuters) - Chip equipment maker Applied Materials <AMAT.O> said it will buy rival Varian Semiconductor Equipment <VSEA.O> for $4.9 billion in cash.

The $63-per-share deal represents a 55 percent premium to Varian stock's closing price on Tuesday.

The deal is expected to add to Applied Materials' adjusted earnings in the first year, it said.

Varian is a supplier of ion implantation equipment used by chipmakers around the world.

Varian shares closed at $40.55 on Tuesday on Nasdaq. (Reporting by Himank Sharma in Bangalore; Editing by Gopakumar Warrier)