Laser companies come in all sizes, with a handful of laser companies being very large and generally publicly owned, a few others that could be considered medium sized, and many others that are very small. Most of the small and medium ones have been around many years and they typically quite happily serve one or more niche laser segments. Occasionally one of these smaller laser companies get gobbled up by a larger laser company in an effort by the larger laser company to acquire new technology and potentially enter new markets
But in the last few months, I have seen a very different type of acquisition taking place: large public laser companies are being acquired by other large public companies. In February, MKS Instruments (NASDAQ: MKSI) announced that it was acquiring Newport (NASDAQ: NEWP) for $980M, and in March, Coherent (NASDAQ: COHR) announced it was acquiring Rofin-Sinar (NASDAQ: RSTI) for $942M. If large companies acquiring small laser companies are a good sign, then large companies acquiring large laser companies must be even better, right? Unfortunately that isn’t true--in fact it could be a ominous sign for the laser industry.
For more analysis of the impact of these acquisitions on the laser market--and the potential pitfalls--CLICK here for the full blog by Allen Nogee on the Strategies Unlimited website.
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