March 19, 2018 / 12:43 PM / 8 months ago

BRIEF-KLA-Tencor To Buy Orbotech In Cash-and-Stock Deal

March 19 (Reuters) - Orbotech Ltd :

* ‍KLA-TENCOR ANNOUNCED $2 BILLION SHARE REPURCHASE AUTHORIZATION ​

* KLA-TENCOR ANNOUNCES AGREEMENT TO ACQUIRE ORBOTECH LTD.

* DEAL FOR ‍AN EQUITY VALUE OF APPROXIMATELY $3.4 BILLION

* ​‍KLA-TENCOR WILL BUY ORBOTECH FOR $38.86 IN CASH AND 0.25 OF SHARE OF KLA-TENCOR COMMON STOCK IN EXCHANGE FOR EACH ORDINARY SHARE OF ORBOTECH​

* TRANSACTION IS EXPECTED TO BE IMMEDIATELY ACCRETIVE TO KLA-TENCOR’S REVENUE GROWTH MODEL, NON-GAAP EARNINGS AND FREE CASH FLOW PER SHARE

* KLA-TENCOR’S SHARE REPURCHASE PROGRAM TARGETED TO BE COMPLETED WITHIN 12 TO 18 MONTHS POST CLOSE OF TRANSACTION

* TOTAL COST SYNERGIES ARE EXPECTED TO BE ABOUT $50 MILLION ON ANNUALIZED BASIS WITHIN 12 TO 24 MONTHS FOLLOWING CLOSING OF TRANSACTION

* ‍KLA-TENCOR INTENDS TO RAISE APPROXIMATELY $1 BILLION IN NEW LONG-TERM DEBT FINANCING TO COMPLETE SHARE REPURCHASE​

* ‍TRANSACTION APPROVED BY BOARD OF DIRECTORS OF KLA-TENCOR, ORBOTECH

* KLA-TENCOR INTENDS TO FUND CASH PORTION OF PURCHASE PRICE WITH CASH FROM COMBINED COMPANY’S BALANCE SHEET

* TRANSACTION IS NOT SUBJECT TO ANY FINANCING CONDITIONALITY

* ‍KLA-TENCOR’S $2 BILLION SHARE REPURCHASE PROGRAM IS TARGETED TO BE COMPLETED WITHIN 12 TO 18 MONTHS FOLLOWING CLOSE OF TRANSACTION​

* NO APPROVAL BY KLA-TENCOR STOCKHOLDERS IS REQUIRED FOR DEAL Source text for Eikon: Further company coverage:

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