CR Technology to Be Bought by San Jose Firm

Photon Dynamics Inc., a maker of systems to test and repair flat-panel displays, said Tuesday it agreed to buy Laguna Niguel-based CR Technology, a maker of X-ray and optical inspection systems, for about $26.8 million in stock, extending Photon’s reach into systems for printed circuit boards.

Photon Dynamics said it will acquire closely held CR Technology for about 2 million newly issued shares. Photon Dynamics said the acquisition is expected to add to earnings in 1999 and 2000.

CR Technology has about 45 employees, which will increase San Jose-based Photon’s work force nearly 50%. No firings are planned. Richard Amtower will continue as president of CR Technology, which will operate as a unit of Photon Dynamics.

The deal, subject to shareholder and regulatory approvals, is expected to close in the fourth quarter, Photo Dynamics said.

Shares of Photon Dynamics, which had fiscal 1998 revenue of $22 million, rose 6 cents to $13.38.