Lam, Novellus plan to close deal Monday

Lam gets regulators' go-ahead to buy Novellus; deal to close on Monday

Associated Press

FREMONT, Calif. (AP) -- Lam Research Corp. and Novellus Systems Inc., two suppliers for chipmakers, said Friday that they expect Lam's $3 billion purchase of Novellus to be completed after the markets close on Monday.

The companies said they have received final approval from government regulators for the deal, which shareholders of both companies approved on May 10.

The combined company will keep Lam's name and keep Lam's CEO and president, Martin Anstice, in those roles.

Novellus shareholders will receive 1.125 shares of Lam for each share of Novellus. When Lam announced the deal in December, it estimated the total value at $3.3 billion, but Lam's shares have fallen about 7 percent since then.

Novellus has about 72 million shares outstanding. At Lam's price as of mid-day Friday, the purchase would be worth about $3 billion.

Shares of Lam, which is based in Fremont, Calif., fell 93 cents, or 2.5 percent, to $36.37 by mid-afternoon Friday amid a broad market slump.

Shares of San Jose, Calif.-based Novellus dipped 94 cents, or 2.3 percent, to $40.89.

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