Exchange traded funds (ETFs) that invest in semiconductor stocks opened higher Wednesday after a deal for Varian Semiconductor Equipment (NasdaqGS: VSEA) that values the company at a 55% premium.
Varian is a holding in semiconductor ETFs such as PowerShares Dynamic Semiconductors (NYSEArca: PSI), which rallied 2% in early trading Wednesday.
Applied Materials (NasdaqGS: AMAT) on Wednesday said it will acquire Varian for $63 a share in cash, a 55% premium to Tuesday’s close, according to a press release.
“Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent,” said Mike Splinter, chief executive of Applied.