Applied Materials buys Etec in $1.8 billion stock deal
03/01/2000
SANTA CLARA, CALIF.
Applied Materials Inc., the world`s largest maker of semiconductor manufacturing equipment, announced that it would buy Etec Systems Inc. in a stock deal currently valued at approximately $1.8 billion. Etec, based in Hayward, Calif., develops technology to make masks, which are used to print circuitry patterns onto silicon wafers. Each share of Etec`s stock will be exchanged for 0.649 shares of Applied Materials` common stock; the acquisition will be accounted for as a pooling of interests and is expected to close, pending the approval of shareholders and U.S. regulators.
"By combining our expertise in process technology and metrology with the leading supplier of advanced mask pattern generation equipment, we have the opportunity to advance mask-making technology," said James Morgan, Applied Materials chairman and chief executive officer.
Etec, which is the dominant company in the mask-making business, makes the single-most expensive piece of capital equipment in the chip-making business; its systems sell for about $10 to $15 million each.
Analysts said Applied will gain Etec`s technology and experience in laser beam writing and electron beam writing, which Applied can use in its metrology business and in a venture with Lucent Technologies Inc., ASM Lithography and others for next-generation lithography - a technique using UV sensitive masks to create patterns on silicon wafers.
"Etec delivers industry-leading mask pattern generation technology and has an established record of success," said Steve Cooper, chairman, president and chief executive officer of Etec Systems. "Applied Materials` global infrastructure, financial strength and technical expertise will enable us to leverage our existing products and product development to address the advancing technical requirements of smaller geometries.
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Etec`s Interconnect Products Group manufactures Laser Direct Imaging systems, which enable manufacturing of high-density printed circuits directly from digital files.