Investing
Semitool Becomes Part of Applied Materials (SMTL, AMAT)
Published:
Last Updated:
Semitool, Inc. (NASDAQ: SMTL) has become the perfect fit for Applied Materials, Inc. (NASDAQ: AMAT). Applied has decided to acquire the maker of multi-chamber single-wafer and batch wet chemical processing equipment used in the fabrication of semiconductor devices. The company is being acquired by Applied Materials for $11.00 per share in cash. The $364 million deal is small enough that it should not bleed too much from Applied Materials’ shares as its market cap is some $17 billion and now that it has earnings behind it.
With Semitool’s earnings just last night, the company offered guidance that can be interpolated to Applied Materials. Shipments for the coming quarter are expected to range from $47 million to $50 million; and management expects to report revenue in a range of between $190 million to $210 million for fiscal-2010.
As far as how this relates to Applied Materials, analysts according to Thomson Reuters are looking for revenues of $7.18 billion for its fiscal year-end October-2010. In short, this is a bolt-on or tool chest acquisition.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
