Orbotech acquire SPTS for $370 million
10 July, 2014
Orbotech makes a strategic move to the Advanced Packaging and MEMS markets. SPTS Technologies provides solutions for Advanced Packaging, MEMS, LEDs, high speed RF on GaAs, and power management devices
Asher Levy, CEO of Orbotech Ltd. “Orbotech and SPTS are complementary in many ways”
Orbotech Ltd. from Yavne, Israel is making a bold move to the markets of Advanced Packaging and MEMS devices. The company announced an agreement to acquire SPTS Technologies Group Limited, a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry.
Orbotech will acquire SPTS for a total consideration (including repayment or assumption of debt) of approximately $370 million in cash. The acquisition and related costs are expected to be financed through a combination of cash on hand and approximately $300 million in debt financing under a new term loan facility. The acquisition and financing are expected to close during of the third quarter of 2014.
By building on SPTS’ technological and commercial position, Orbotech will be able to offer solutions for a broad range of the most demanding micro manufacturing applications. The merger will expand Orbotech’s presence in Europe and North America and provide SPTS with a greater reach throughout the Pacific region, particularly in China.
“Acquiring SPTS allows us to accelerate the expansion into Advanced Packaging, with multiple manufacturing solutions ideally suited for this growing segment”, said Mr. Asher Levy, CEO of Orbotech Ltd. “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.”
In 2014, SPTS is expected to generate revenues of approximately $180 million, gross margin of approximately 48% of its revenues, and EBITDA margin of approximately 25% of its revenues. The acquisition of SPTS is expected to be accretive to Orbotech’s non-GAAP earnings immediately after closing.
About SPTS Technologies
SPTS Technologies (a Bridgepoint portfolio company) designs, manufactures, sells, and supports etch, PVD, CVD and thermal wafer processing solutions for Advanced Packaging, MEMS, LEDs, high speed RF on GaAs, and power management devices. With manufacturing facilities in Newport, Wales, Allentown, Pennsylvania, and San Jose, California, the company operates across 19 countries in Europe, North America and Asia-Pacific.
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