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Business Combination
3 Months Ended
Jan. 31, 2021
Business Combinations [Abstract]  
Business Combination Business CombinationKokusai Electric CorporationOn June 30, 2019, Applied entered into a Share Purchase Agreement (SPA) with Kokusai Electric Corporation (Kokusai Electric) and KKR HKE Investment L.P. (KKR) providing for Applied’s acquisition of all outstanding shares of Kokusai Electric for a base purchase price of $2.2 billion in cash, subject to certain adjustments. Kokusai Electric is a leading company in providing high-productivity batch processing systems and services for memory, foundry and logic customers. These systems complement Applied’s portfolio of single-wafer processing systems. Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied’s Semiconductor Systems segment and continue to be based in Tokyo, with technology and manufacturing centers in Toyama, Japan and Cheonan, Korea. The transaction is subject to regulatory approvals and other customary closing conditions. The SPA provides that if the SPA is terminated under certain circumstances involving the failure to obtain required regulatory approvals, Applied would be obligated to pay KKR a termination fee equal to $154 million in cash, and that either Applied or KKR may terminate the SPA if closing does not occur by December 30, 2020, which was the extended outside date mutually agreed by the parties pursuant to the SPA (Outside Date). On January 1, 2021, the parties to the SPA entered into an amendment, pursuant to which they agreed, among other things, to extend the Outside Date to March 19, 2021 (Extended Outside Date); increase the base purchase price to $3.5 billion; if all the closing conditions are satisfied on or prior to the Extended Outside Date, the Extended Outside Date is automatically extended to the first business day following the first date on which the parties would otherwise be obligated to consummate the closing in accordance with the SPA (or such other date mutually agreed in writing by Applied and KKR); if all the closing conditions are not satisfied on or prior to the Extended Outside Date, the SPA is deemed to be automatically terminated by KKR effective as of the Extended Outside Date (unless otherwise mutually agreed in writing by Applied and KKR); and if the SPA is terminated or deemed to be automatically terminated under certain circumstances involving the failure to obtain required regulatory approvals, Applied is obligated to pay KKR a termination fee equal to $154 million in cash.