Abstract
For enterprises, Mergers and Acquisitions are the way of external growth to achieve the expansion. December 14, 2011, semiconductor equipment manufacturers Lam Research and Novellus Systems, both announced a statement of M&A agreement, Lam Research will merge Novellus Systems at the price of $ 44.42 per share, amounting to $ 3.3 billion. These two companies agreed to the convertible way completed the acquisition. The conversion ratio is 1.125 shares of ordinary shares of Lam Research to a share of ordinary shares of Novellus Systems at Nasdaq closing stock price on December 14, 2011. In this study, the resource-based theory corresponding financial ratios are used to analyze, to compare the competitive advantage of the two companies, the price evaluation and the integration process of the M&A are also explored. The results showed that, Lam Research in the overall appraisal of the competitive advantage is more competitive than Novellus Systems. In the analysis of the acquisition price to the discounted free cash flow, at the results obtained show the $ 44.42 per share purchase price offered by Lam, less than the estimate of $ 1.88, discount 4.06%. In addition, the introduction of the assistance of external professional team during M & A process, by their professional experience and planning, the integration program of merger will go more smoothly. However, in the work of communication, it still needs the company's senior management to do it with the greatest sincerity to diminish the anxiety of the staffs. Lam Research and Novellus Systems, the products and technologies of both companies complement each other. After the merger, it is expected to become a semiconductor equipment company with broader product portfolio. The synergy of operating and profitability performance of the new company can be as the follow-up study projects.