UPDATE 1-Israel's Orbotech to buy Photon Dynamics for $290 mln
(Recasts; adds details, share movement)
June 26 (Reuters) - Israel's Orbotech Ltd (ORBK.O) agreed to buy Photon Dynamics Inc PHTN.O, a maker of flat-panel production tools, for about $290 million to boost its flat panel display business, the companies said.
Orbotech, which makes equipment used in inspecting circuit boards and flat display panels, will pay $15.60 for each Photon share, a premium of 35 percent over the stock's Wednesday closing price of $11.56.
The acquisition, the largest by Orbotech till date, will be financed through a combination of internally generated funds and external-source financing.
The boards of directors of both companies have approved the acquisition, which is expected to close in the second half of 2008, the companies said.
Lehman Brothers Inc advised Orbotech while Credit Suisse Securities advised Photon Dynamics on the deal.
Photon shares, which had surged 41 percent so far this year, jumped 31 percent to $15.16 in trading before the bell. (Reporting by Kuganandhan Paramanandan in Bangalore; Editing by Deepak Kannan)
