A nearly $5 billion deal for Varian Semiconductor Equipment (NasdaqGS: VSEA) could be a catalyst to push semiconductor ETFs higher.
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.
Varian is a holding in semiconductor and tech ETFs such as PowerShares Dynamic Semiconductors (NYSEArca: PSI) and First Trust Technology AlphaDEX (NYSEArca: FXL).
PowerShares Dynamic Semiconductors
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.