U.S. semiconductor manufacturing equipment provider Lam Research has announced that it will acquire Novellus Systems Inc. in a stock-for-stock transaction valued at about $3.3 billion. We expect that Lam Research's business risk profile will improve as a result of materially better product diversity. Pro forma leverage will rise only moderately despite the acquisition and significant planned share repurchases. We are placing all our ratings on Lam Research, including the 'BB+' corporate credit rating, on CreditWatch with positive implications. On Dec. 15, 2011, Standard&Poor's Ratings Services placed all of its ratings on Lam Research Corp., including the 'BB+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch placement follows the announcement that Lam Research will acquire Novellus Systems
