Orbotech
An Israeli electronics-manufacturing technology company whose inspection, imaging, and production systems are now part of KLA.
Last updated August 31, 2026
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Overview
Orbotech is an Israeli technology company serving manufacturers of printed circuit boards, flat-panel displays, advanced semiconductor packages, micro-electromechanical systems, and other electronic components. Its systems help electronics producers read, write, inspect, and connect the increasingly complex layers and structures used in modern devices. The company is particularly associated with automated optical inspection, computer-aided manufacturing, laser direct imaging, display inspection, and equipment for advanced packaging and semiconductor production. The business originated in the early 1980s, when engineers at Israel’s Electro-Optical Industry Ltd. identified commercial applications for electro-optical systems originally developed for military purposes. The resulting company, Optrotech, brought an automated optical inspection system to market after approximately eighteen months of development. AOI enabled printed-circuit-board manufacturers to identify production defects more quickly and consistently than manual inspection, supporting higher throughput and helping drive improvements in electronics manufacturing productivity. Optrotech raised capital through a 1984 NASDAQ initial public offering and used the proceeds to develop further inspection technology and broaden into computer-aided manufacturing. A second Israeli company, Orbot, was founded in 1983 by Yochai Richter, Kobi Richter, Shimon Ullman, Zvi Lapidot, and Ami Caspi, with backing from Ormat Industries. Orbot developed competing inspection systems. As the AOI market slowed in the early 1990s, the two companies combined their complementary operations. The 1992 transaction resulted in the business being renamed Orbotech and created a major supplier in the AOI market. Orbotech subsequently expanded through product development, joint ventures, and acquisitions rather than remaining focused solely on PCB inspection. During the 1990s, Orbotech broadened its PCB portfolio through CAM software, assembled-board inspection, Japanese sales and marketing operations, and laser-based direct imaging. It also entered the flat-panel-display sector, developing inspection systems for the rapidly growing LCD industry and acquiring KLA Acrotec in Japan in 1999. Other diversification initiatives included Orbograph, which supplied automated check-processing systems and later healthcare payment-processing services, and Orbotech Medical Solutions, a medical-imaging business that acquired detector and gamma-camera technologies before being sold to General Electric in 2010. Orbotech continued expanding into adjacent high-technology manufacturing markets in the 2000s and 2010s. Its assembly AOI operation became ORPRO Vision in 2009, while its acquisition of SPTS Technologies in 2014 added equipment for MEMS and semiconductor-device production. These moves strengthened Orbotech’s position across the electronics manufacturing chain, from circuit-board fabrication and display production to semiconductor packaging and related device processes. KLA-Tencor announced an agreement to acquire Orbotech in March 2018. The proposed consideration combined cash and KLA shares, and the transaction valued Orbotech at approximately $69.02 per share based on the announced terms. KLA completed the acquisition in February 2019. Orbotech therefore became a KLA subsidiary, with its technologies incorporated into KLA’s broader portfolio of process-control and yield-management solutions. The Orbotech name and product heritage continue to be associated with electronics manufacturing equipment, although corporate ownership and product organization are now governed by KLA.
History
Orbotech’s roots lie in Israel’s electro-optics sector. In 1981, engineers at Electro-Optical Industry Ltd. developed commercial applications for electro-optical technology that had initially been associated with military work. Led by Shlomo Barak and backed financially by Elron Electronic Industries chairman Uzia Galil, the group created Optrotech. After about eighteen months of development, Optrotech introduced an automated optical inspection system for printed circuit boards. The product helped manufacturers automate defect detection and increase production speed and volume. Optrotech became a public company in 1984, completing a NASDAQ offering that raised $10 million. It used the capital to advance AOI technology and begin developing computer-aided design and manufacturing tools. In 1983, meanwhile, Yochai and Kobi Richter, Shimon Ullman, Zvi Lapidot, and Ami Caspi had founded Orbot with backing from Ormat Industries. Orbot also developed automated inspection systems, creating a direct Israeli competitor. A slowdown in the worldwide AOI market led Optrotech and Orbot to explore a combination in 1991. Their agreement was completed in August 1992, with Orbot absorbing Optrotech while excluding the semiconductor subsidiary Orbot Instruments. The combined operation adopted the name Orbotech and reportedly achieved a dominant position in AOI for PCBs. Orbotech then pursued diversification. It established Orbograph in 1995 for automated check processing, formed a laser-imaging joint venture with Jenoptik in 1996, and acquired the AOI business of Germany’s W. Schuh GmbH in 1997. In 1998 it strengthened its Japanese PCB business through the acquisition of Toyo Ink Manufacturing’s PCB sales and marketing operations and CAM product line. The same year it entered a joint venture with Valor Computerized Systems, creating Frontline PCB Solutions for PCB-fabrication CAM software. The company entered flat-panel-display manufacturing during the 1990s. In 1999 it acquired Japan’s KLA Acrotec from KLA-Tencor, supporting the development of a significant LCD inspection business. Orbotech also created a technology-venture arm in 2001 and established Orbotech Medical Solutions in 2004. Orbotech Medical acquired Imarad in 2005 for solid-state gamma-radiation detector technology and Danish 3D Diagnostic Development in 2007 for nuclear-cardiac-imaging equipment. The medical business was sold to General Electric in 2010. Orbotech’s assembly inspection operation, originating with the Schuh acquisition, was spun off as ORPRO Vision in 2009. Orbograph expanded into healthcare revenue-cycle services through its 2011 acquisition of Correct Claims Now. In 2014, Orbotech acquired SPTS Technologies, adding equipment used in MEMS and semiconductor-device production. This expanded the company beyond PCB and display applications into additional semiconductor manufacturing processes. KLA-Tencor announced its planned acquisition of Orbotech in March 2018. The transaction combined cash and KLA stock and carried an announced implied value of about $69.02 per Orbotech share. KLA completed the acquisition in February 2019. Orbotech became part of KLA’s process-control and yield-management business, while retaining an identifiable technology and product heritage in electronics manufacturing.
- 2019
KLA completes acquisition
[1]Orbotech becomes a subsidiary of KLA Corporation.
- 2018
KLA-Tencor announces acquisition
[1]KLA-Tencor announces a cash-and-stock transaction to acquire Orbotech.
- 2014
SPTS Technologies is acquired
[1]The acquisition adds manufacturing equipment for MEMS and semiconductor devices.
- 2009
Assembly AOI business becomes ORPRO Vision
[1]Orbotech separates its assembly inspection operation into ORPRO Vision GmbH.
- 1999
Orbotech enters flat-panel-display inspection
[1]The acquisition of KLA Acrotec supports Orbotech’s expansion into LCD inspection.
- 1995
Orbograph is launched
[1]Orbotech enters automated check-processing technology through a new subsidiary.
- 1992
Optrotech and Orbot combine
[1]The merged business is renamed Orbotech and expands its position in PCB automated optical inspection.
- 1984
Optrotech completes NASDAQ offering
[1]The company raises $10 million to fund next-generation inspection and CAM development.
- 1983
Orbot is established
[1]A separate Israeli team founds Orbot, which develops competing automated optical inspection systems.
- 1981
Optrotech is founded
[1]Engineers at Electro-Optical Industry establish Optrotech to commercialize electro-optical technology for manufacturing applications.
Products and positioning
A specialist supplier of precision inspection, imaging, and manufacturing systems for high-complexity electronics production, positioned around process control, defect detection, yield improvement, and production automation.
PCB inspection · 1981
Automated Optical Inspection systems
Orbotech’s original core technology used optical imaging and software analysis to identify defects on printed circuit boards. These systems helped manufacturers automate inspection, improve production consistency, and increase throughput compared with manual checking.
PCB imaging · 1996
Laser Direct Imaging systems
Laser-based direct-imaging equipment transfers circuit patterns onto PCB materials without relying exclusively on conventional phototools. Orbotech developed this capability through its work with Jenoptik and incorporated it into its broader PCB manufacturing portfolio.
Display manufacturing equipment · 1999
Flat-panel-display inspection systems
These systems inspect LCD and other flat-panel-display manufacturing processes for defects and pattern irregularities. The product family emerged from Orbotech’s expansion into display production during the 1990s and its acquisition of KLA Acrotec.
Semiconductor manufacturing equipment · 2014
SPTS semiconductor and MEMS equipment
Through SPTS Technologies, Orbotech added equipment used in the manufacture of MEMS and semiconductor devices. The acquisition broadened Orbotech’s reach from inspection and imaging into specialized process equipment.
Brand decisions
2018
Agreement to be acquired by KLA-TencorM&ABackground
KLA-Tencor sought to expand its process-control and yield-management capabilities across electronics manufacturing and advanced semiconductor-related markets.
Action taken
KLA-Tencor agreed to exchange $38.86 in cash and 0.25 KLA-Tencor share for each Orbotech ordinary share.
Aftermath
The transaction closed in February 2019, making Orbotech a KLA subsidiary.
Implied consideration per Orbotech share. Approximately $69.02 (Announced March 2018)
2014
Acquisition of SPTS TechnologiesM&ABackground
Orbotech sought to expand into growth areas connected with semiconductor and MEMS manufacturing.
Action taken
Orbotech acquired SPTS Technologies, a manufacturer of equipment for MEMS and semiconductor-device production.
Aftermath
The transaction broadened Orbotech’s manufacturing-technology portfolio beyond PCB and display applications.
Total consideration. $371 million (2014 acquisition)
2010
Sale of Orbotech Medical SolutionsM&ABackground
Orbotech decided to exit its medical-technology diversification after building a business around gamma-radiation detectors and nuclear-cardiac-imaging equipment.
Action taken
The company sold Orbotech Medical Solutions to GE Medical Systems Israel.
Aftermath
Orbotech returned its strategic emphasis toward electronics manufacturing and related imaging technologies.
1992
Combination of Optrotech and OrbotM&ABackground
A slowdown in the global automated-optical-inspection market encouraged the two Israeli competitors to combine complementary operations.
Action taken
Orbot absorbed Optrotech, excluding the semiconductor subsidiary Orbot Instruments, and the resulting company adopted the Orbotech name.
Aftermath
The combined company became a major supplier of automated optical inspection for printed-circuit-board manufacturers.
Recent events
- 2019
KLA completes Orbotech acquisition[1]
M&A
KLA completed its acquisition of Orbotech, making the Israeli electronics-manufacturing technology company a KLA subsidiary.
- 2018
Orbotech agrees to acquisition by KLA-Tencor[1]
M&A
KLA-Tencor announced an agreement to acquire Orbotech using a combination of cash and KLA shares, with announced consideration equivalent to approximately $69.02 per Orbotech share.
- 2010
Orbotech sells medical subsidiary to General Electric[1]
M&A
Orbotech agreed to sell Orbotech Medical Solutions to a General Electric subsidiary, ending a diversification effort into medical imaging.
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