* Offer at 53 percent premium to FSI's Aug 10 close
* Deal approved by boards of both firms
Aug 13 Japan's Tokyo Electron Ltd said
it will buy chip-equipment maker FSI International Inc
for $252.5 million in cash, to add heft to its technology used
to make smaller but faster chips used in cellphones and tablets.
The deal, valued at $6.20 per share, represents a 53 percent
premium to FSI's closing price of $4.04 on August 10. FSI shares
were up 52 percent at $6.16 on the Nasdaq on Monday.
Tokyo Electron said FSI's cleaning and surface preparation
equipment used in making microchips will help the company
improve its market position in the crucial category of 28
nanometer chips and below.
These chips feature transistors that measure 28 nanometers,
or billionths of a meter, and are critical for the small chips
used in cellphones and tablets.
Smartphones and tablets are the only bright spots for the
semiconductor industry, which is struggling with dwindling PC
sales and slowing demand.
Top chip gear maker Applied Materials Inc, which
provides manufacturing equipment for 28 nanometer chips, in July
slashed its full-year targets but said demand for these chips
would pick up soon.
Tokyo Electron said the deal, which has been unanimously
approved by the boards of both companies, will be financed with
existing cash resources.
FSI, which had revenue of $91 million for fiscal year 2011,
forecast a weak fourth quarter as customers delayed orders amid
a global economic slowdown.