Oxford Instruments plc (“Oxford Instruments”), a leading provider of high technology tools and systems for industry and research, announces the acquisition of Omicron NanoTechnology GmbH (together with its subsidiaries, “Omicron”) and Omniprobe, Inc. (“Omniprobe”).
Omicron has been acquired for a cash consideration of €32.4 million (around £28.1 million), on a cash free debt free basis, to include land and buildings valued at €5.0 million (around £4.3 million).
Omicron is a German company based in Frankfurt, with subsidiaries in the UK, USA, Japan and France, that designs and produces advanced microscopes and chemical analysis instruments for nanotechnology research. Its products are used by scientists for research into the properties of materials using ultra high vacuum to ensure extreme sample purity. The microscopes can image and move individual atoms allowing the observation and manufacture of nanostructures and are used in applications such as research into next generation computer storage and processing devices.
Omicron generated Earnings Before Interest and Tax (“EBIT”) of €3.2 million in the financial year ended 31 December 2010 from revenue in the same year of €37.9 million. As at 31 December 2010, Omicron had gross assets of €29.3 million.
Omniprobe has been acquired for an initial cash consideration of US$19.2 million and a deferred element, payable in two years time on the terms set out in the agreement, of US$0.8 million (in total around £12.1 million), on a cash free debt free basis.
Omniprobe is a US company based in Dallas, which designs and produces tools giving customers nano-scale laboratory capabilities within microscopes. Its products enable probing, manipulation, selective deposition and etch, and sample preparation at the nano-scale for customers in research sectors including nanotechnology and semiconducting devices. A key application is the use of probes to cut out and remove ultra small pieces of a silicon wafer for quality control testing in the semiconductor industry.
Omniprobe generated EBIT of $1.7 million in the twelve months to 31 March 2011 from revenue in the same period of $9.1 million.
The combination of Oxford Instruments and these businesses strengthens the Group’s Nanotechnology Tools sector, through the addition of a complementary portfolio of products and technologies. Both acquired businesses share a similar customer base and routes to market with the existing companies in the Group’s Nanotechnology Tools sector. The acquisitions, together with the Group’s existing capabilities, bring opportunities for the development of integrated new products.
These acquisitions are expected to be adjusted Earnings Per Share* enhancing in the current year, notwithstanding the impact of the proposed equity placing, being announced separately today.
Commenting on the acquisitions, Jonathan Flint, Chief Executive of Oxford Instruments, stated: “I’m delighted with these acquisitions, which augment our growing ability to offer a suite of tools that help our customers benefit from the opportunities offered by nanotechnology.”