Orbotech

The story of Orbotech begins not as one, but as two competing Israeli companies. In 1981, a team of engineers led by Shlomo Barak founded Optrotech to commercialize electro-optical systems for inspecting printed circuit boards (PCBs). Two years later, brothers Yochai and Kobi Richter, along with Shimon Ullman, Zvi Lapidot, and Ami Caspi, founded a rival company, Orbot. Both companies pioneered the field of Automated Optical Inspection (AOI), a critical technology for ensuring quality in electronics manufacturing. In the early days, both firms saw success. Optrotech went public on the NASDAQ in 1984 to fund further development. However, a slowdown in the global AOI market in the early 1990s pushed the two fierce rivals to consider a merger. In 1992, the two companies joined forces to become Orbotech, instantly capturing a dominant share of the AOI market. Throughout the 1990s and 2000s, Orbotech expanded its technology portfolio and market reach. It diversified into solutions for manufacturing flat panel displays (FPDs) and other electronic components. This growth was fueled by strategic acquisitions, including the AOI business of Germany's W. Schuh and Japan's KLA Acrotec. The company's journey as an independent entity culminated in a major event. In March 2018, the US firm KLA-Tencor announced it would acquire Orbotech in a cash and stock deal valued at approximately $3.4 billion. The acquisition was completed in February 2019, bringing Orbotech under the umbrella of KLA. Orbotech continues to operate from its base in Yavne, Israel, as a standalone business within KLA, contributing its expertise in inspection and yield management for the electronics industry.