Exec: Applied Materials merger bodes well for Austin

Sep 25, 2013
Austin Business Journal

Applied Materials Inc.’s $9.39 billion acquisition of Tokyo Electron Ltd. should do more for Austin than if the two companies continued to operate independently, an Applied Materials executive said Tuesday


The deal is scheduled to take six month to 12 months to be finalized. And any decisions to combine the companies' Austin operations into one facility won’t be finalized until then, said Rick Gesing, Applied Material’s vice president of worldwide operations and head of its Austin office


But the combined operations is expected to make it easier to capture a larger share of the market, he said


“We really believe there’s significant opportunity to solve high-value problems for customers and the talent combined could get more business rather than operating separately,” Gesing said


Tokyo Electron — the No. 2 maker of chip production machines — employs more than 300 workers in Austin, while Applied Materials has about 2,500 Austin workers on its payrolls, according to the ABJ 2013 Book of Lists


The companies reported the deal as a merger of equals, with the new entity being incorporated in the Netherlands. Chipmaking equipment company Applied Materials (Nasdaq: AMAT) will own 68 percent of the entity


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