+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
*/
News Article

Orbotech to acquire SPTS Technologies

Acquisition marks strategic move into advanced packaging and MEMS markets


Orbotech, a provider of production solutions for manufacturers of PCBs, flat panel displays and other electronic components, is to acquire SPTS Technologies Group, the UK manufacturer of etch, deposition and thermal processing equipment, from European private equity firm Bridgepoint and others. Under the terms of the agreement, Orbotech will acquire SPTS for  approximately $370 million in cash.

SPTS offers a range of manufacturing solutions for the advanced packaging and MEMS (micro-electro-mechanical systems) markets. By building on SPTS' technological and commercial leadership position, Orbotech plans to offer solutions for a broad range of demanding micro manufacturing applications. Moreover, the combination 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 recognised technology leader. SPTS benefits from established, long-standing 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", said  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." 

Kevin Crofton, president and COO of SPTS, stated: "This is an exceptional opportunity to bring together two proven leaders both operating at the cutting-edge of consumer electronics manufacturing. We share a common vision for our respective markets, including an uncompromising commitment to our customers. Together, we will be a powerhouse of expertise in micro manufacturing, providing a broad solution set of mission-critical capabilities to serve designers and manufacturers across the dynamic electronics industry landscape. We are excited about the opportunity to leverage Orbotech's strong presence in the Pacific as well as its products and technologies."

 Christopher Bell, partner at Bridgepoint, said: "Clear market leadership of high growth niches as well as the application of its technology to emerging niches in the microchip industry have made SPTS strategically attractive. With its new shareholder, the business will be well positioned to combine expertise in micro manufacturing to advance further. We wish the team continued success in the future."

 Financial information

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, each subject to certain closing conditions. In 2014, under UK GAAP and on a standalone basis for the full year, SPTS is expected to generate revenues of approximately $180 million, gross margin of approximately 48 percent of its revenues, and EBITDA margin of approximately 25 percent of its revenues. 

Connecting the Compound Semiconductor Industry

The 13th CS International conference builds on the strengths of its predecessors, with around 40 leaders from industry and academia delivering presentations that fall within five key themes: Ultrafast Communication; Making Headway with the MicroLED; Taking the Power from Silicon, New Vectors for the VCSEL, and Ultra-wide Bandgap Devices.

Delegates attending these sessions will gain insight into device technology, find out about the current status and the roadmap for the compound semiconductor industry, and discover the latest advances in tools and processes that will drive up fab yields and throughputs.

To discover our sponsorship and exhibition opportunities, contact us at:

Email: info@csinternational.net
Phone: +44 (0)24 7671 8970

To register your place as a delegate, visit: https://csinternational.net/register

Register
×
Search the news archive

To close this popup you can press escape or click the close icon.
×
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: