Lam to Buy KLA-Tencor in $10.6B Chip Machinery Deal

Lam Research Corp. agreed to acquire KLA-Tencor Corp. in a $10.6 billion cash-and-stock deal, testing regulators six months after a smaller merger between chip-equipment suppliers was halted over antitrust concerns.

KLA-Tencor shareholders can elect to receive $32 in cash and 0.5 of a Lam Research common stock, in all-cash, all-stock, or mixed consideration, according to a statement Oct. 21. The offer values KLA-Tencor at about $67.02 a share, or 24 percent more than the stock’s last closing price in New York.

The announcement takes total semiconductor deals announced in the past year to almost $95 billion as rising costs drive ...