Intermolecular to be Acquired by Merck KGaA
8th May 2019
EMD Group Holding II, a wholly owned subsidiary of Germany’s Merck KGaA, has agreed to acquire Intermolecular for $1.20 per share, yielding an equity value of $62 million. The US company based in San Jose, California, is a supplier of advanced materials to a range of industries including semiconductors, consumer electronics, automotive and aerospace. Intermolecular reported annual sales of $33.7 million in 2018 and employs about 90 people.
The transaction already unanimously approved by Intermolecular's board of directors and the executive board of Merck is expected to complete in the second half of this year, subject to the approval of Intermolecular’s stockholders as well as regulatory clearances and other customary closing conditions The German company trades in the US under the name of EMD.
Intermolecular’s production and testing capabilities allow material combinations to be tested directly within the specific target application. In comparison to conventional methods, these capabilities translate to major time reductions in the development process as well as dramatically accelerating learning cycles and insights into novel material systems, Merck said.
Kai Beckmann, member of the Merck executive board and CEO of Performance Materials, said Intermolecular’s unique capabilities in rapid materials screening, in combination with Merck’s R&D pipeline, will allow the Darmstadt-based company to offer its customers faster materials innovation and device integration compared to conventional materials R&D.
Chris Kramer, president and CEO of Intermolecular, added that the two firms’ technology expertise is “very complementary.”
In its most recent move to better position itself as an electronics industry supplier, Merck in mid-April agreed to acquire US Versum Materials for a cash price of $53 per share. The pact was sealed after the company raised its bid from the $48 per share originally offered, and the Arizona-based subsidiary of Air Products and Chemicals terminated its agreement to be bought by Entegris.
Photo: © Merck KGaA
EMD Group Holding II, a wholly owned subsidiary of Germany’s Merck KGaA, has agreed to acquire US company Intermolecular.
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