August 17, 2004 – Seeking to expand beyond its semiconductor capital equipment portfolio with a more broad-based services approach, Applied Materials Inc., Santa Clara, CA, has agreed to acquire Netherlands-based Metron Technology N.V., including operating subsidiaries and businesses, for $84.6 million and assumption of liabilities. The deal is expected to close in November (Applied’s fiscal 4Q04, Metron’s 2Q05).

Metron offers a range of outsourced fab services covering parts and materials supply, equipment maintenance, and refurbishment of legacy equipment, with several operating facilities in the US, Europe, Israel, and Asia. It will become a wholly owned subsidiary of Applied, retaining the Metron name and brand, and be part of Applied’s global services program, developing and marketing products for the company’s growing fab services program as well as supporting non-Applied products.

The deal is the latest in “an ongoing series of strategic moves to service a larger market and expand our support capabilities beyond Applied Materials’ tools,” stated president and CEO Mike Splinter. Indeed, the company has been noticeably beefing up its services offering lately — in the past three months, Applied has signed a deal to work with Taiwan’s Phoenix Silicon International (PSI) for 300mm wafer test and reclamation services; agreed to provide on-site support and spare parts management for Brooks Automation Inc.’s fab-automation hardware products; and announced a partnership with Praxair Electronics to create “commodity consumables services” covering a range of consumable items for fabs.