By Chris Wack
Applied Materials said Monday that it is buying Kokusai Electric Corp. for $2.2 billion in cash from global investment firm KKR & Co. (KKR).
Applied Materials said in a release that, following the close of the transaction, Kokusai Electric will operate as a business unit of its Semiconductor Products Group and continue to be based in Tokyo.
Applied Materials said the acquisition is expected to be immediately accretive to its adjusted earnings per share at close.
In case the deal fails to go through, under certain conditions Applied Materials will pay KKR a termination fee equal to $154 million in cash.
Applied Materials expects to finance the transaction using a combination of balance sheet cash and a term loan facility. The transaction is expected to close within 12 months.
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