Chip machinery maker ASML has reached agreement to take over Taiwan’s Hermes Microvision for some €2.75bn, the companies said in a statement.

Hermes makes verification systems for chip machinery. The agreement will ‘significantly improve process control, and hence yields, for our customers,’ chief executive officer Peter Wennink said. ‘This also means that we expect enhanced product offerings faster.’

The two companies have been working together for two years to see how they could best combine their capabilities. ‘We found that we could… better serve our customer by teaming up as one company,’ Wennink said.

The takeover is being paid for in cash and through new shares.