Applied Materials has signed a definitive agreement to acquire Kokusai Electric for $2.2 billion in cash from global investment firm KKR.

Kokusai Electric provides batch processing systems and services for memory, foundry and logic customers. The company has supply chain and manufacturing capabilities in Japan and Asia.

Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied’s Semiconductor Products Group and continue to be based in Tokyo, with technology and manufacturing centers in Toyama, Japan and Cheonan, Korea.

The transaction has been approved by the Applied Materials board. The transaction is expected to close within approximately 12 months and is subject to regulatory approvals and other customary closing conditions.

“Kokusai Electric has a strong culture of innovation along with excellent customer relationships and serves fast-growing areas of the wafer fab equipment market,” said Gary Dickerson, president and CEO of Applied Materials. “By bringing Kokusai Electric’s talented team into Applied, we believe we will accelerate innovation for customers and create significant value for our shareholders.”

“The opportunity to combine with Applied Materials will be very attractive for Kokusai Electric’s customers and employees alike,” said Fumiyuki Kanai, president and CEO of Kokusai Electric. “We are excited about the opportunity to integrate Kokusai Electric’s experienced team with Applied’s global development, customer support and services capabilities. We believe the combination will accelerate our ability to bring exciting new technologies to customers.”

Goldman Sachs served as financial advisor, and Hogan Lovells and Cleary Gottlieb Steen & Hamilton served as legal counsel for Applied Materials.

[Image courtesy: Applied Materials]