SANTA CLARA, California ( TheStreet) -- Applied Materials ( AMAT ) agreed to buy Varian Semiconductor ( VSEA) for $63 a share in cash, or about $4.9 billion. The price, the companies said in a press release, represents a 55% premium to Varian's closing price Tuesday of $40.55, or a 38% premium to Varian's 30-day average closing price. Varian supplies ion implantation equipment used by chipmakers. Applied Materials said the transaction is expected to be accretive to its earnings on a non-GAAP basis in the first year. "Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent," said Mike Splinter, Applied Materials' chairman and CEO, in a statement. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.