The proposed $3.3 billion combination of Lam Research and Novellus Systems boosted trading on other stocks in the semiconductor capital equipment space on Thursday, as some analysts speculated of further deals in the segment.
Late Wednesday, Lam Research announced plans to acquire Novellus Systems in an all-stock transaction worth about $3.3 billion. Read full report on Lam-Novellus merger.
The deal follows a similar move in May by sector leader Applied Materials, which signed a deal to buy Varian Semiconductor for $4.9 billion in cash. Read full story on Applied Materials buying Varian.
The Lam-Novellus deal represented a 28% premium for Novellus over its most-recent closing price, for a stock that had already run up more than 30% in the last few months. Other stocks in the semicap space got a boost on Thursday from the news, helping the Philadelphia Semiconductor Index to rise as much as 2% in early trades.