BROMMA, SWEDEN -- Micronic Laser Systems will acquire Mydata Automation in a stock-based deal. The combined company will have annual revenues of approximately SEK 1.2 billion ($140 million) and 640 employees.

Under terms of the signed letter of intent, Skanditek Industriförvaltning, which owns Mydata, will sell the company in exchange for newly issued shares in Micronic. Skanditek becomes the largest shareholder in Micronic, at about 38% of the capital and vote.

The combined company will continue to operate the existing businesses as standalone entities. No changes are planned for Mydata, the firms said in a press release.

The acquisition will help the companies' financial position and improve their possibilities for growth, the press release said.

“There is a strong trend, driven by the development in the consumer electronic segment, of closing the gap between the traditional semiconductor and SMT industries," said Mydata CEO Bengt Broman. "We see an interesting and real opportunity to combine technologies from both companies to exploit the possibilities in this new segment."

Mydata has annual sales of about $90 million.