Semi suppliers merge

Chaska, MN-based Entegris is to merge with Mykrolis in a deal that will create a combined company valued at over $1.3 billion.

Under the terms of the agreement between the two companies, Entegris and Mykrolis will merge in a stock-for stock exchange, in which Mykroslis shareholders will receive 1.39 shares of Entegris common stock for every share of Mykrolis common stock they hold.

The marriage of the two suppliers to the semiconductor industry, which will in future be known as Entegris, will have combined sales of $650 million.

When the deal is completed, current Entegris shareholders will own approximately 56% of the combined enterprise and Mykrolis shareholders will own around 44%.

Entegris has about 1,800 worldwide employees and Mykrolis 900. The combined company aims to save $15 million annually by eliminating around 5% of the workforce who are engaged in administrative functions.