MKS Instruments has entered into an agreement to acquire Newport Corporation. The all-cash transaction is valued at approximately $980 million. According to an 8-K filing, Barclays and Deutsche Bank have agreed to provide up to $800 million in debt financing to support the transaction.

In addition, the lenders have committed to provide the company with a $50 million asset-based revolving credit facility for working capital purposes, as needed.

“The combination of MKS Instruments and Newport Corporation creates a premier supplier of critical components and subsystems for a diverse set of growing end markets, each with a common need for highly precise technology enabling solutions” said Gerald Colella, MKS Instruments CEO and president.

“This acquisition is consistent with our strategy to pursue sustained profitable growth by expanding into adjacent markets while increasing our served addressable market in our core semiconductor business. Our shared customer requirements and complementary technologies together with our increased scale will enable us to lead in our served markets, deliver innovative and cost-effective solutions for our customers, and drive profitable growth.”

The combined company is expected to have approximately $1.4 billion in pro forma annual revenue, based on the two companies 2015 historical results. The transaction is expected to be accretive to MKS Instruments Non-GAAP net earnings and free cash flow during the first 12 months post-closing. The combined company expects to realize $35 million in annualized cost synergies within 18 to 36 months and anticipates revenue synergies from the expansion of MKS Instruments served addressable markets and leverage of complementary sales channels.