MKS Instruments To Acquire Newport For $980 Mln

(RTTNews) - MKS Instruments, Inc. (MKSI) Tuesday said it has agreed to acquire photonics solutions provider Newport Corp. (NEWP) for $23.00 per share in a deal valued at around $980 million. The transaction is expected to be accretive to MKS Instruments' adjusted net earnings and free cash flow during the first 12 months post-closing.

The combined company is expected to have approximately $1.4 billion in pro forma annual revenue and to realize $35 million in annualized cost synergies within 18 to 36 months.

Gerald Colella, MKS Instruments' chief executive officer and president said, "The combination of MKS Instruments and Newport Corporation 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."

MKS Instruments said it intends to fund the transaction with a combination of available cash on hand and up to $800 million in committed debt financing.

The transaction has been approved by MKS Instruments' and Newport Corporation's board of directors. The deal is expected to close in the second quarter of 2016.