KLA-Tencor enters the battle to buy August
The move follows an offer by Rudolph Technologies – another US equipment company – to acquire August and a proposed merger between August and Californian metrology business Nanometrics. KLA-Tencor claims that its offer values August at 34% more than the Nanometrics deal and 13% more than the Rudolph bid. In a written statement, KLA said that the bid "represents compelling value" to August’s shareholder.
The statement also said that the company "is prepared to meet immediately with the board of August Technology to negotiate and execute a definitive merger agreement".
Under the proposed deal, KLA-Tencor would fund the acquisition from its existing cash balance. "We believe that the acquisition of August Technology by KLA-Tencor serves the best interests of our respective shareholders and customers," said KLA-Tencor president and chief executive officer Ken Schroeder.
"For the shareholders of August Technology, this offer represents a significant premium, while the shareholders of KLA-Tencor can look forward to realising important synergies and growth from new market opportunities."
KLA-Tencor’s bid for August is the latest twist in what is rapidly becoming a corporate saga. August and Nanometrics originally agreed to merge in an attempt to create a major player in the equipment market.
Then Rudolph sought to spoil this plan in January by putting in a hostile bid to buy August for US$190 million.
August however rejected this bid and said it was still committed to merging with Nanometrics. The company has also said that it intends to fight KLA-Tencor’s bid.
