Merck KGaA closed the €5.8 billion acquisition of Versum Materials Inc., an unsolicited deal that was originally rejected by the performance materials company in March.
Darmstadt, Germany-based Merck said in an Oct. 7 press release that the deal will make the pharmaceutical company a leader in science and technology, with a specific focus on electric materials in the semiconductor and display industries. The deal recently cleared its final hurdle before closing after receiving approval from China's State Administration for Market Regulation.
Merck's total headcount will increase by 2,300 to 56,000 across 66 countries. The company expects savings of €75 million to be realized by 2022 due to the merger. Merck said it will now focus on generating cash to lower debt following the closing of the acquisition.
Versum will be integrated into Merck's existing semiconductor business unit, and remain headquartered in Tempe, Ariz., Merck said. Shares of Versum will cease trading on the New York Stock Exchange, and existing shareholders will receive $53 per share in cash.
Merck originally offered a $48 per share competing offer for Versum in February amid a $3.9 billion all-stock merger of equals with Billerica, Mass.-based Entegris Inc. Versum's board rejected Merck's offer, but was eventually wooed when the deal value was raised to €5.8 billion. Versum will have to pay Entegris a termination fee of $140 million after the merger of equals fell through.
