MKS Instruments to acquire Atotech
MKS Instrument and Atotech Limited, a process chemicals technology company and provider of electroplating solutions, have entered into a definitive agreement pursuant to which MKS will acquire Atotech in a USD 5.1 billion deal.
The transaction will result in pro forma annual revenue of USD 3.8 billion and MKS expects to realise USD 50 million in annualised cost synergies within 18 to 36 months. “Together, MKS and Atotech will be uniquely positioned to drive faster, better solutions and innovations for customers in advanced electronics,” says MKS President and CEO John T.C. Lee, in a press release. “By combining leading capabilities in lasers, optics, motion and process chemistry, the combined company will optimize the PCB Interconnect, a significant enabling point of next-generation advanced electronics that represents the next frontier for miniaturization and complexity. We anticipate the addition of Atotech will position MKS to enable roadmaps for future generations of advanced electronics devices. The acquisition of Atotech also provides MKS with a recurring revenue stream from a consumables portfolio for leading-edge devices, with meaningful scale and potential on which to build.” MKS and Atotech have complementary customer solutions in key advanced electronics markets, with MKS’ expertise in via drilling and Atotech in electroplating. PCBs are becoming increasingly complex as miniaturisation is creating new challenges where reliability, productivity and peak performance are critical. The roadmap for next generation interconnects continues to accelerate the need for more integrated solutions that enable yield and throughput gains. "The combination of Atotech’s expertise in electroplating and chemistry and MKS’ strengths in lasers, laser systems, optics and motion will enable innovative and ground-breaking solutions for customers in the areas of materials processing and complex applications. This transaction is an excellent outcome for our shareholders, and we believe it will provide immediate value and the opportunity to benefit from the upside potential of the combined company,” says Geoff Wild, CEO of Atotech. MKS intends to fund the cash portion of the transaction with a combination of available cash on hand and committed debt financing. ___________________