US fab equipment component maker MKS Instruments said on Thursday that it will be acquiring Germany’s Atotech for US$5.1 billion.
MKS is buying Atotech at a 10% premium and the deal is expected to be completed within the year.
The US company will buy the German company with cash on hand and committed debt financing.
Atotech makes chemicals used in boards and chips that power smartphones, heavy equipment and appliances.
The company listed on listed on the New York Stock Exchange in February at US$18 per share. It has a subsidiary in South Korea founded in 1996 which operates a factory at the country.
According to Reuters, MKS approached Atotech after its bid to acquire laser maker Coherent failed.
MKS said it expected US$50 million worth of synergy from the acquisition within three years. It says it will use Atotech’s metal and chemical technologies to st strengthen its chip manufacturing competence.