Orbotech Ltd. reported signing an agreement to acquire SPTS Technologies Group Limited (SPTS), a U.K. manufacturer of microelectronics etch, deposition, and thermal processing equipment. The agreement calls for Orbotech to pay SPTS a total of about $370 million in cash financed through about $70 million in cash-on-hand and 300 million in debt financing under a new term loan facility. The acquisition and financing are scheduled to close in the third quarter of 2014, subject to certain closing conditions.
SPTS offers manufacturing solutions for the advanced packaging and MEMS (micro-electro-mechanical systems) markets. Through the acquisition, Orbotech expects to accelerate its growth and diversification and its move up the electronics value chain. Orbotech will be able to offer solutions for micro manufacturing applications. The acquisition is also expected to expand Orbotech’s presence in Europe and North America and grow SPTS’ customer base throughout the Pacific region, particularly in China.
“SPTS benefits from established, long-standing partnerships with major industry players,” said Mr. Asher Levy, CEO of Orbotech Ltd. “Orbotech and SPTS are complementary in many ways.”
Mr. Kevin Crofton, President and Chief Operating Officer of SPTS, stated, ” Together, we will be a powerhouse of expertise in micro-manufacturing, providing a broad solution set of mission-critical capabilities to serve designers and manufacturers across the dynamic electronics industry landscape. “