Lam Research To Buy KLA-Tencor In $10.6 Bln Deal

By MarketWatch Pulse

Shares in KLA-Tencor Corp. could jump in Wednesday's session following news that Lam Research Corp. plans to acquire the company in a cash-and-stock deal valued at about $10.6 billion. The deal is billed as creating a "premier" provider of semiconductor equipment. KLA-Tencor shareholders will be entitled to elect to receive the "equivalent of $32.00 in cash and 0.5 of a share of Lam Research common stock, in all-cash, all-stock, or mixed consideration, subject to proration as more fully described in the merger agreement," Lam said Wednesday in a news release. The deal values KLA-Tencor at $67.02 a share, representing a 24% premium to where the company's stock closed Tuesday.

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