By Lisa Kerner
Charlotte, N.C., June 26 - Orbotech Ltd. signed a definitive agreement to acquire Photon Dynamics, Inc. for $15.60 per share in cash, or a total of approximately $290 million, to grow its flat-panel display business.
The acquisition will be financed through a combination of internally generated funds and external financing, a Photon news release said.
Both companies' boards of directors approved the transaction, which is slated to close during the second half of 2008, according to the release.
The merger agreement contains termination rights for both Photon Dynamics and Orbotech and provides for payment of a $9 million termination fee, it was reported in a form 8-K filed with the Securities and Exchange Commission.
"The synergies resulting from the integration of our two companies' highly complementary skill sets, technologies and infrastructures will open the door to significant enhancements in FPD yield management and process control, and will create potential for other production capabilities in the future," Orbotech chief executive officer Rani Cohen stated in the release.
Lehman Brothers Inc. advised Orbotech, and Credit Suisse Securities (USA) LLC advised Photon Dynamics.
Photon Dynamics, based in San Jose, Calif., provides yield management solutions to the flat-panel display industry.
Orbotech develops yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. The company is located in Yavne, Israel.
Acquirer: | Orbotech Ltd.
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Target: | Photon Dynamics, Inc.
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Announcement date: | June 26
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Transaction total: | $290 million
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Price per share: | $15.60
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Termination fee: | $9 million
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Expected closing: | Second half of 2008
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Stock price of target: | Nasdaq: PHTN: $11.56 on June 25
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