ATC - MKS Instruments buys Atotech for $5.1B in cash and stock deal

MKS Instruments (MKSI) has acquired Atotech (ATC) +4% premarket, for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share.The equity value of the transaction is $5.1B and the enterprise value of the transaction is ~$6.5B. The transaction will result in pro forma annual revenue of $3.8B and will be accretive to MKS’ Non-GAAP net earnings per share within the first year and additive to free cash flow.The company expects to realize $50M in annualized cost synergies within 18 to 36 months. 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 intends to fund the cash portion of the transaction with a combination of available cash on hand and committed debt financing.The combined company is expected to have pro forma net cash and investments of ~$800M and total debt outstanding of

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MKS Instruments buys Atotech for $5.1B in cash and stock deal