MKS Instruments, a provider of process control solutions, is set to purchase photonics technology giant Newport for $23 per share, totalling approximately $980 million. The acquisition has been approved by both companies’ board of directors and is expected to close in the second quarter of 2016.
The combined enterprise is expected to generate approximately $1.4 billion in annual revenue, based on the two companies’ 2015 historical results.
MKS Instruments intends to fund the transaction with a combination of available cash on hand and up to $800 million in committed debt financing.
‘The combination of MKS Instruments and Newport creates a premier supplier of critical components and subsystems for a diverse set of growing end markets, each with a common need for highly precise technology enabling solutions,’ said Gerald Colella, MKS Instruments’ chief executive officer and president. ‘Our shared customer requirements and complementary technologies together with our increased scale will enable us to lead in our served markets, deliver innovative and cost-effective solutions for our customers, and drive profitable growth.’