NEW YORK (Thomson Financial) - Orbotech Ltd. Thursday agreed to acquire
Photon Dynamics Inc., a provider of test and repair systems for liquid crystal
flat panel display manufacturers, for $290 million.
The cash deal values shares of San Jose, Calif.-based Photon at $15.60 each,
a premium of roughly 35% to Wednesday's closing price of $11.56.
The parties expect the transaction to close in the second half of 2008. Both
companies' boards have approved the deal, which Orbotech plans to finance
through a combination of internally-generated funds and external sources.
Photon Dynamics, whose shares were up 39.3% since the start of 2008 based on
Wednesday's close, reported revenue of $45.1 million for its fiscal second
quarter ended March 31. The company's profit for the period came in at $3.9
million, or 21 cents a share.
Orbotech, an Israeli company that produces inspection and process control
systems used in the assembly of circuit boards, posted revenue of $100.5 million
for the its fiscal first quarter ended in March.
Shares of Orbotech closed Wednesday at $14.94. The stock is down about 14.9%
since the start of the year.
Michael Baron
mb
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