NEW YORK (TheStreet) -- Shares of Orbotech Ltd. (ORBK) are surging, up 5.48% to $16.51, after the company agreed to acquire SPTS Technologies Group, a U.K.-based manufacturer of equipment for the microelectronics industry, from European private equity firm Bridgepoint and others for $370 million in cash, Reuters reports.
The Israel-based company makes automated optical inspection systems for producers of electronic components.
The acquisition is expected to be financed through a combination of cash and about $300 million in debt, Orbotech said today
Orbotech said it will be able to offer solutions for a broad range of demanding micro manufacturing applications.
The deal will also expand Orbotech's presence in Europe and North America and provide SPTS with a greater reach in the Pacific region, particularly in China, Reuters said.
TheStreet Ratings team rates ORBOTECH LTD as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORBOTECH LTD (ORBK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."