CMC Materials (NASDAQ:CCMP) stock is soaring higher on Wednesday thanks to a massive $6.5 billion deal with Entegris (NASDAQ:ENTG).
This deal has Entegris agreeing to acquire semiconductor materials supplier CMC Materials for a total of $6.5 billion. The company is going to use a mix of cash on hand, new debt, and shares to fund its purchase shares of CCMP stock.
The offer from Entegris includes $133 in cash and .4506 shares of ENTG stock for each share of CCMP stock. This represents a 35% premium over CCMP stock’s closing price on Tuesday and a 38% premium to its 10-day volume-weighted average share price.
According to a news release, CMC Materials shareholders will own 9% of ENTG stock once the deal is complete. The remaining 91% of shares will belong to investors in ENTG stock.
David Li, president and CEO of CMC Materials, said the following about the agreement sending CCMP stock higher today.
“CMC Materials and Entegris share highly complementary businesses and capabilities grounded in world-class innovation and customer collaboration. As part of Entegris’ leading platform, we will maintain our strong focus on technology innovation and customer partnerships and provide expanded opportunities for our employees. We look forward to what the combined company can accomplish.”
Shareholders of CCMP stock will have to approve the deal before it can close, as will regulators. So long as there are no hiccups along the way, it should reach completion in the second half of 2022.
CCMP stock is up 30.2% and ENTG stock is down 5.9% as of Wednesday afternoon.
Investors seeking more stock market news for today are in the right place!
InvestorPlace holds all of the latest stock stories that investors will want to know about for Wednesday! A few examples of those are Roku (NASDAQ:ROKU) stock price predictions, Novavax (NASDAQ:NVAX) gaining ahead of a WHO meeting, as well as Blackberry (NYSE:BB) signing a deal with BMW. You can lean all about these events by checking out the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
