SANTA CLARA, Calif. (

TheStreet

) --

Applied Materials

(AMAT) - Get Report

has reached a deal to acquire

Semitool

(SMTL)

for $11 a share, or about $364 million, in a cash tender offer.

Shares of Semitool, a maker of wafer-processing equipment for semiconductor manufacturers, closed Monday at $8.40.

"The semiconductor industry recovery is being fueled by global demand for mobile devices such as smart phones, notebook PCs and portable media players for music, gaming and books," said Mike Splinter, chairman and CEO of Applied Materials, in a statement Tuesday. "With this acquisition, Applied will help the world's leading chipmakers create ever-smaller and more powerful devices."

The boards of both companies have approved the deal.

Directors and executives holding about 32% of Semitool's outstanding stock will tender their shares to Applied Materials' offer. Applied Materials plans to begin the tender offer promptly and expects it to close by the end of the year.

-- Reported by Joseph Woelfel in New York

.

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