YAVNE, ISRAEL -- Orbotech today announced the signing of a definitive share purchase agreement to acquire SPTS Technologies,

a UK-based leading manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry. Orbotech will pay $370 million in cash, including repayment or assumption of debt, for SPTS from private equity firm Bridgepoint and others. The deal is expected to close in the third quarter.

SPTS offers an extensive range of manufacturing equipment for the advanced packaging and MEMS (micro-electro-mechanical systems) markets.

The deal gives Orbotech greater end-market diversity and a broader product range. It also will expand Orbotech’s presence in Europe and North America and provide SPTS with a greater reach throughout the Pacific region, particularly in China.

“Orbotech identified Advanced Packaging as a strategic and natural extension of its business into an adjacent high growth market, where SPTS is a recognized technology leader," said Asher Levy, CEO of Orbotech. "SPTS benefits from established, longstanding partnerships with major industry players. It is a well-known and highly respected brand with deep domain expertise in those segments in which it operates. Acquiring SPTS allows us to accelerate the expansion into Advanced Packaging, with multiple manufacturing solutions ideally suited for this growing segment.

“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.”