By Chris Wack
Applied Materials Inc. said it is acquiring Kokusai Electric Corp. for $2.2 billion from global investment firm KKR & Co.
Like Applied Materials, Kokusai is a producer of semiconductor-manufacturing equipment. Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied Materials' 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.
KKR acquired Kokusai Electric in 2017.
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.