IPG Photonics retakes full ownership of NTO IRE-Polus

Oxford, MA -- IPG Photonics Corporation has announced that it purchased the outstanding 22.5% minority interest in its Russia-based subsidiary, NTO IRE-Polus (NTO), that it previously sold to Open Joint Stock Company "Rusnano." IPG regained complete control of NTO for $55.4 million in cash. The Company expects the transaction to be accretive starting in the third quarter of 2012. The net income attributed to Rusnano's non-controlling interest in NTO had resulted in a reduction to IPG Photonics' earnings of $0.07 per diluted share in 2011 and $0.01 per diluted share in the first quarter of 2012.

In December 2010, IPG sold a 12.5% minority ownership stake in NTO to Rusnano, which later purchased an additional 10% in June 2011, as permitted under the original agreement. In addition, IPG had a call option commencing in December 2013 to buy back the minority stake at a predetermined value and Rusnano had a put option commencing in December 2015 to sell its minority stake to IPG at a predetermined value. Under the terms of the agreement announced, the put and call options terminated.