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KLA-Tencor Buys Israel's Orbotech at $3.4 Billion Valuation

  • Deal values Orbotech at $69.02/share, 15% premium from Friday
  • Acquisition may bring cost savings of $50 million in 2 years
Updated on

KLA-Tencor Corp. agreed to acquire Orbotech Ltd., an Israeli firm that develops ways to enhance manufacturing of electronic products, to diversify its sources of growth.

KLA will buy Orbotech for about $69.02 per share through a combination of cash and stock, according to a statement Monday. That gives Orbotech an equity value of approximately $3.4 billion and represents a 15 percent premium over Friday’s closing price in New York.