Orbotech Ltd., an Israeli high-tech firm, was purchased by KLA-Tencor Corporation in a deal valued at $3.4 billion. The agreement was announced today (Monday).

Orbotech Ltd. is headquartered in Yavne

Orbotech Ltd. is headquartered in Yavne Photo Credit: PR

KLA-Tencor Corporation (KLAC) announced Monday that it is buying the Israeli high-tech company Orbotech Ltd. The deal is valued at $3.4 billion.

Orbotech Ltd., which develops technologies that are used in the production of printed circuit boards and chip devices, was founded in 1992 when two Israeli companies, Orbot and Optrotech, merged.

In accordance with the deal, KLAC will pay Orbotech $38.86 in cash and 0.25 of a KLA-Tencor common share for each share owned by Orbotech. The Israeli company finished the past year with $901 million in sales and a net profit of $142 million. According to estimates, the company is expected to surpass $1 billion in sales in 2018.