KLA-Tencor Corp (NASDAQ:KLAC) and Lam Research Corporation entered into a Termination Agreement (the “Termination Agreement”) to terminate the Agreement and Plan of Merger and Reorganization, dated as of October 20, 2015, by and among the Company, Lam Research, Topeka Merger Sub 1, Inc. and Topeka Merger Sub 2, Inc. (the “Merger Agreement”). The parties decided to it was not in the best interests of their respective stakeholders to continue pursuing the merger after the U.S. Department of Justice (the “DOJ”) advised KLA-Tencor and Lam Research that it would not continue with a consent decree that the parties had been negotiating. No termination fees will be payable by either the Company or Lam Research in connection with the termination of the Merger Agreement.
A copy of the Termination Agreement is attached hereto as Exhibit 2.1 and is incorporated herein by reference. The terminated Merger Agreement is more fully described in the Company’s current report on Form 8-K filed with the Securities and Exchange Commission on October 21, 2015.
On October 5, 2016, the Company announced that its board of directors has authorized an increase in the level of the Company’s quarterly dividend from $0.52 to $0.54 per share. This increase is expected to take effect beginning with KLA-Tencor’s quarterly dividend to be declared in November 2016.
A copy of the press release related to the increase in the level of the Company’s quarterly dividend is attached hereto as Exhibit 99.2 and incorporated herein by reference.