Orbotech describes the acquisition as strategic move into enabling advanced packaging and MEMS manufacturing, areas in which SPTS has a strong reputation. Orbotech is buying SPTS from European private equity firm Bridgepoint and others.
As well as moving Orbotech from predominantly PCB engagement up to ICs it will expand Orbotech's presence in Europe and North America while providing SPTS with a greater reach throughout the Pacific region, particularly in China, Orbotech said.
"Orbotech and SPTS are complementary in many ways. 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," said Asher Levy, CEO of Orbotech, in a statement.
Christopher Bell, partner at Bridgepoint, said: "Clear market leadership of high growth niches as well as the application of its technology to emerging niches in the microchip industry have made SPTS strategically attractive. With its new shareholder, the business will be well positioned to combine expertise in micro manufacturing to advance further."
SPST is expected to generate $180 million of revenue in the 2014 calendar year and Orbotech is funding the acquisition with a mix of cash on hand and $300 million of debt financing.
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