Semiconductor equipment maker Lam Research agreed to purchase rival KLA-Tencor Corp in a deal valued at about $10.6 billion, the latest in a string of acquisitions in the chip industry. KLA-Tencor's shares, which rose 18.5 percent to $63.85 in premarket trading, were still below Lam's cash-and-stock offer of $67.02 per share.Demand for cheaper chips and new products, as well as a drive by technology companies to consolidate suppliers, has led to record levels of dealmaking in the semiconductor industry this year.The combined entity, to be helmed by Lam Chief Executive Martin Anstice, will command a 42 percent market share of the wafer fabrication equipment market and have pro forma annual revenue of $8.7 billion.
Lam Research Corporation (Lam Research) is a supplier of wafer fabrication equipment and services to the semiconductor industry. Shares of LRCX traded higher by 3.53% or $2.39/share to $70.03. In the past year, the shares have traded as low as $61.20 and as high as $85.70. On average, 2306280 shares of LRCX exchange hands on a given day and today's volume is recorded at 5499533.