Mergers and Acquistions News
Categories: Semi-Conductors
October 17th 2008, 11:29AM
Electro Scientific Industries (ESI) and Zygo Corporation, which both manufacture products geared towards the semiconductor industry, are to merge.
The firms announced this week that they had reached a definitive agreement to join together in order to utilise economies of scale, spread risk through diversification and improve growth potential.
Nick Konidaris, ESI's chief executive and president, suggested that there may be even more important benefits.
He remarked: "Although the merger provides many technical and competitive advantages, the largest creation of value will be in combining the talent and superior technical expertise of two great organisations."
The tax-free transaction will see Zygo shareholders receive 1.0233 shares of ESI stock for each Zygo share held.
ESI will then issue just over 18 million shares, which will result in Zygo shareholders owning 40 per cent of the combined organisation.
In other mergers and acquisition news, an unnamed source has claimed that Siemens chief executive Peter Loescher believes there is the opportunity for takeovers in the marketplace over the next 18 months, Reuters reports.
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