Lam Research buying Novellus Systems in $3.3B deal

SAN FRANCISCO (AP) — Semiconductor equipment maker Lam Research says it will buy rival Novellus Systems (News - Alert) for $3.3 billion in stock.

Lam Research Corp. said Wednesday that the acquisition will help it cultivate more advanced chip making technology and increase its revenue faster than either company could on its own.

Novellus Systems Inc. stockholders will get 1.125 shares of Lam common stock for each Novellus share. The deal values Novellus at $44.42 per share, based on Lam's Wednesday closing price.

The companies said Lam shareholders will own 59 percent of the combined company and Novellus shareholders 41 percent.

Lam and Novellus expect the deal to be finalized in the second quarter, and Lam believes the deal will benefit its bottom line within a year.