Orbotech has agreed to acquire SPTS Technologies Group, a United Kingdom-based manufacturer of equipment for the microelectronics industry, from European private equity firm Bridgepoint and others for $370 million in cash.

Israel's Orbotech makes automated optical inspection systems for producers of electronic components such as printed circuit boards and flat panel displays.

The acquisition is expected to be financed through a combination of cash and about $300 million in debt, Orbotech said on Monday. The acquisition and financing are expected to close in the third quarter.

Through this acquisition, Orbotech hopes to accelerate its growth and diversification strategy. 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.

"By combining the extensive know-how and core assets of both companies, we will continue to enhance Orbotech's portfolio and industry leadership while focusing our efforts on driving profitable growth," Orbotech Chief Executive Asher Lev said in a statement.

In 2014, SPTS is expected to generate revenue of $180 million and a gross margin of 48 percent of its revenue. The acquisition of SPTS is expected to be accretive to Orbotech's adjusted earnings immediately after closing.

Orbotech estimates that post closing, it will have $100 million of cash.