TEL AVIV, July 7 Orbotech has agreed to
acquire SPTS Technologies Group, a United Kingdom-based
manufacturer of equipment for the microelectronics industry,
from European private equity firm Bridgepoint and others for
$370 million in cash.
Israel's Orbotech makes automated optical inspection systems
for producers of electronic components such as printed circuit
boards and flat panel displays.
The acquisition is expected to be financed through a
combination of cash and about $300 million in debt, Orbotech
said on Monday. The acquisition and financing are expected to
close in the third quarter.
Through this acquisition, Orbotech hopes to accelerate its
growth and diversification strategy. Orbotech said it will be
able to offer solutions for a broad range of demanding micro
The deal will also expand Orbotech's presence in Europe and
North America and provide SPTS with a greater reach in the
Pacific region, particularly in China.
"By combining the extensive know-how and core assets of both
companies we will continue to enhance Orbotech's portfolio and
industry leadership while focusing our efforts on driving
profitable growth," Orbotech Chief Executive Asher Lev said in a
In 2014, SPTS is expected to generate revenue of $180
million and a gross margin of 48 percent of its revenue. The
acquisition of SPTS is expected to be accretive to Orbotech's
adjusted earnings immediately after closing.
Orbotech estimates that post closing, it will have $100
million of cash.
(Reporting by Tova Cohen)