Precision infrared optics components and laser measurement equipment manufacturer Ophir Optronics Ltd. (TASE:OPIR) has acquired a US manufacturer of laser measuring devices for $2.1 million. Ophir did not disclose the name of the company.
Ophir Optronics made the deal though its wholly-owned US subsidiary, Ophir Holdings Inc.
Ophir Optronic will pay $1.89 million when the deal is closed, and deposit 10% of the price tag, $210,000, with a trustee for 12 months. The deposit will serve as collateral to ensure the sellers' commitments under the contract. In two years, Ophir will pay up to an additional $500,000 as a milestone payment if there is a cumulative increase in sales of over 8% a year, in each of the two years following the deal, compared with the company's sales in 2009.
The acquired company, which is privately owned, has 15 employees. As a developer and manufacturer of laser measuring equipment, the company's business is synergetic with Ophir Optronics.
The CEO of the acquired company, who is also a shareholder, will remain with the acquired company for one year following completion of the deal.
According to Ophir Optronics, the acquired company had $2.3 million in sales in the 12 months through January 2010, and $3.7 million in sales in the 12 months through January 2009. Most revenue is from the sale of products, calibration maintenance, and repaid services for customers.
Ophir Optronics' share price rose 2.9% by midday today to NIS 16.78, giving a market cap of NIS 417 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010