Semiconductor equipment maker KLA-Tencor said on Monday it would buy Orbotech, whose systems are used in the manufacturing of printed circuit boards and chip devices, in a deal valued at $3.4 billion.
KLA-Tencor's offer price of $69.02 in cash and stock represents a premium of 15.3 percent to Orbotech stock's closing price of $59.90 on Friday.
KLA-Tencor also announced a $2 billion share repurchase authorization, which it plans to complete within 12 to 18 months after the Orbotech deal closes.