Benefits of the acquisition
The acquisition is expected to create great capability in process control, delivering optimized results in partnership with customers. The combined company expects to realize $250 million in cost synergies within the next 18 to 24 months of the acquisition.
“I strongly believe that this transaction represents a great outcome for all of KLA-Tencor’s key stakeholders,” said Rick Wallace, president and chief executive officer of KLA-Tencor (KLAC). “The combined company will be uniquely positioned to work collaboratively with our customers to help them meet the challenges of FinFET, multi-patterning and 3D NAND development.”
Major acquisitions in the tech space in fiscal 2015
On October 14, 2015, shares of SanDisk (SNDK) rose by 10% on reports that the firm had hired an investment bank to explore a potential sale of the company. Micron Tech (MU) was also reported to be interested in acquiring SanDisk. Earlier last month, Dell announced that it was looking to buy EMC Corporation for a combination of cash and stock. The total transaction value of the EMC-Dell merger is close to $67 billion if one includes cash and assumed debt.