KLA-Tencor will acquire Orbotech for $38.86 in cash and 0.25 of a share of KLA-Tencor common stock in exchange for each ordinary share of Orbotech, implying a total consideration of approximately $69.02 per share. The transaction values Orbotech at an equity value of approximately $3.4bn and an enterprise value of $3.2bn. In addition, KLA-Tencor announced a $2bn share repurchase authorization. With this acquisition, KLA-Tencor will significantly diversify its revenue base and add $2.5bn of addressable market opportunity in the high-growth printed circuit board, flat panel display, packaging, and semiconductor manufacturing areas. The broader portfolio of leading products, services, and solutions, as well as increased exposure to technology megatrends, will support KLA-Tencor's long-term revenue and earnings growth targets. "This acquisition is consistent with our strategy to pursue sustained, profitable growth by expanding into adjacent markets. This combination will open new market opportunities for KLA-Tencor, and expands our portfolio serving the semiconductor industry." Mr. Wallace continued, "Our companies fit together exceptionally well in terms of people, processes, and technology. In addition, KLA-Tencor has had a strong presence in Israel over the years, and this combination further expands our operations in this important global technology region." Rick Wallace, President and Chief Executive Officer of KLA-Tencor.