The Israeli firm Orbotech — whose systems help produce virtually every electronic device in the world from computers to phones to connected cars — is being acquired by California’s KLA-Tencor Corporation in a transaction with an equity value of approximately $3.4 billion and an enterprise value of $3.2 billion.

This is the fifth largest acquisition in Israeli history, behind Mobileye ($15.3b), NDS ($5b), Chromatis ($4.7b) and Playtika ($4.4b).

KLA-Tencor expects the acquisition will add $2.5 billion of addressable market opportunity in the high-growth printed circuit board, flat-panel display, packaging and semiconductor manufacturing areas.

“Our companies fit together exceptionally well in terms of people, processes and technology,” said Rick Wallace, President and Chief Executive Officer of KLA-Tencor. “In addition, KLA-Tencor has had a strong presence in Israel over the years, and this combination further expands our operations in this important global technology region.”

Orbotech, founded in 1981, will continue to operate under the Orbotech brand as a standalone business of KLA-Tencor based in Yavneh, an Israeli city about half an hour south of Tel Aviv. The company has branches in North America, Europe, Japan and Asia Pacific.

“Together with KLA-Tencor, we will significantly increase growth potential, accelerate our product development roadmap and enhance customer offerings,” said Asher Levy, Chief Executive Officer of Orbotech.

The transaction has been approved by the board of directors of each company and is expected to close by the fourth quarter of calendar year 2018.