MILPITAS, CA – KLA-Tencor completed its acquisition of Orbotech for roughly $3.4 billion in cash and stock.

Under the terms of the agreement, Orbotech shareholders received $38.86 per share in cash, and 0.25 of a share of KLA common stock in exchange for each ordinary share of Orbotech, for a total consideration of $65.93 per share, based on the $108.26 closing sale price of KLA common stock on the Nasdaq on Feb. 19.

The transaction is expected to be immediately accretive to KLA's revenue growth model.

"We are very pleased to have completed the acquisition of Orbotech," said Rick Wallace, president and CEO of KLA. "This new combination extends KLA's market reach within the electronics value chain, opens new high-growth markets for the company, and brings complementary technologies, products and services to our portfolio."

KLA will fund the cash portion of the purchase price with cash from the combined company's balance sheet, and from borrowings from KLA's existing revolving credit facility. As previously announced, in conjunction with this acquisition, the board of directors has authorized an additional $1 billion share repurchase program. KLA intends to raise approximately $1 billion in new long-term public debt to reduce other debt, to repurchase shares, and for general corporate purposes.

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