Orbotech’s $3.4 Billion Acquisition by KLA‑Tencor

On March 19, 2018, KLA‑Tencor Corporation (“KLA‑Tencor”) and Orbotech Ltd. (“Orbotech”) announced that they entered into a definitive agreement pursuant to which KLA‑Tencor, a leading provider of process control and yield management solutions, will acquire Orbotech, a leading global supplier of yield‑enhancing and process‑enabling solutions for the manufacture of electronics products. The transaction values Orbotech at an equity value of approximately $3.4 billion. In addition, KLA‑Tencor announced a $2 billion share repurchase authorization. Cravath is representing Orbotech as U.S. counsel in connection with the transaction.

The Cravath team is led by partner Richard Hall and includes associates Mark Mushkin and Virginia M. Anderson on M&A matters; partner Eric W. Hilfers, senior attorney M. C. Tania Balthazaar and associates Michelle M. Garrett and Peretz Riesenberg on executive compensation and benefits matters; partner David J. Kappos and practice area attorney Anthony N. Magistrale on intellectual property matters; partner Christopher K. Fargo and associate Kiran Sheffrin on tax matters; partner Matthew Morreale on environmental matters; and partner Christine A. Varney, senior attorney Jesse M. Weiss and associate Kate F. Stamell on antitrust matters. Emily C. Weiss also worked on M&A matters and Joel Feigenbaum worked on intellectual property matters.