Bulletin: KLA-Tencor Corp. Ratings And Outlook Unaffected By Acquisition Of Orbotech Ltd.

SAN FRANCISCO (S&P Global Ratings) March 19, 2018--S&P Global Ratings said today that its 'BBB' corporate credit rating and stable outlook on KLA-Tencor Corp. are unchanged following the company's announcement that it has entered into an agreement to purchase Orbotech Ltd. for $3.4 billion. The company plans to fund the acquisition with a combination of equity and cash from the balance sheet. The acquisition of Orbotech--a provider of yield-enhancing and process-enabling solutions for the printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs) end markets--increases KLA's revenue base by more than 20% and expands its addressable market by $2.5 billion in high growth electronics market. It also provides good product and customer diversification to KLA's No. 1

...SAN FRANCISCO (S&P Global Ratings) March 19, 2018--S&P Global Ratings said today that its '###' corporate credit rating and stable outlook on KLA-Tencor Corp. are unchanged following the company's announcement that it has entered into an agreement to purchase Orbotech Ltd. for $3.4 billion. The company plans to fund the acquisition with a combination of equity and cash from the balance sheet. The acquisition of Orbotech--a provider of yield-enhancing and process-enabling solutions for the printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs) end markets--increases KLA's revenue base by more than 20% and expands its addressable market by $2.5 billion in high growth electronics market. It also provides good product and customer diversification to KLA's No. 1 position in the process control market. KLA intends to use roughly $1.9 billion of combined balance sheet cash to partly fund the acquisition, and we believe this will increase its adjusted leverage...

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