Semiconductor equipment maker MKS Instruments, Inc. announced plans to acquire electroplating materials manufacturer Atotech Limited. MKS primarily markets products to semiconductor, industrial technologies, life, and health sciences, research, and defense customers while Atotech customers are from end users in smartphones, communications, computing, industrial, and consumer applications. Both companies entered into a definitive agreement on July 1st, 2021.
According to the agreement, MKS will acquire Atotech for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share. The enterprise value of the transaction is around $6.5 billion. The equity value of the transaction is $5.1 billion.
The Carlyle Group which owns 79% of Atotech’s common shares supported the agreement by signing an irrevocable agreement in favor of the transaction. Earlier, Carlyle held an IPO for Atotech in February 2021 and raised $497.6 million from the IPO.
The transaction is estimated to result in combined Pro-forma annual revenue of $3.8 billion and will be positioned to drive faster, better solutions and innovations according to the company. The companies aim to strengthen their advanced electronics device business and ensure a recurring revenue stream from a consumables portfolio.