American Semiconductor Company KLA-Tencor Buys Israeli Orbotech for $3.4 Billion

Semiconductor equipment maker buys Orbotech in a cash and stock deal at a value of $ 69.02 per share, 17% above the market

Orbotech CEO Asher Levy

 

US-based semiconductor equipment maker Kala-Tencor buys Israeli company Orbotech for cash and shares The proceeds will include $36.86 in cash and 0.25 Kala-Tankor shares for each Orbotech share.

Orbotech’s systems are used in the manufacturing of printed circuit boards and chip devices.

The value of the total consideration is $69.02 per share, 17% higher than the share price on the market – it closed yesterday at $59.02. The consideration reflects Orbotech’s market cap of $ 3.4 billion – the company’s market value is currently $ 2.9 billion.

Orbotech has climbed 87% in the past 12 months and 19.5% since the beginning of the year. The start of Orubtech’s rise is the successful acquisition of BridgePoint’s British company SPTS in August 2014 for $370 million in cash. For a company that had specialized in testing equipment for the lead industry, the decision to switch to production equipment was significant and pushed it forward.

The move put Orbotech into the advanced packaging market for chips, spurred its scope of activity, introduced it into new markets, expanded its basket of products and services and gave it access to new material customers.

The move put Orbotech into the advanced packaging market for chips, spurred its scope of activity, introduced it into new markets, expanded its basket of products and services and gave it access to new material customers.

Orbotech CEO Asher Levy said, “The acquisition is further proof of Orbotech’s position in the markets in which it operates and the strength of its business model. The agreement between the companies significantly strengthens the chances of the joint company to successfully cope with the large investment waves expected in the coming years in the world of electronics.

The connection will improve the future of our employees and will create great value for our shareholders. The combination with KLA will significantly increase Orbotech’s growth potential by enabling us to leverage KLA’s technological leadership to accelerate our product development plans and improve our solutions offerings to our customers. Orbotech will continue to operate as a single unit under the Orbotech brand, and the company headquarters will continue to operate from Yavneh. ”

 

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