LightPath Technologies (NASDAQ: LPTH; Orlando, FL), a manufacturer of optical and infrared components and assemblies, will acquire ISP Optics (Irvington, NY) for $18 million, of which $12 million will be payable in cash with the balance in the form of a note issued to the sellers. With major manufacturing operations in Latvia, ISP manufactures advanced infrared optical components, coatings, and optical sub-systems.
In 2015, ISP generated $12.1 million of revenue, $1.5 million of net income, and $3.1 million of adjusted EBITDA. LightPath plans to finance the cash portion of the purchase price through a combination of the offering and issuance of LightPath’s common stock and debt financing. The acquisition combines LightPath’s high-volume molding technology with ISP’s high-value diamond turning, coatings, and polishing capabilities. ISP’s primary vertical markets are infrared lenses for sensors, military electro-optical products, and infrared imaging cameras.
According to Lightpath, ISP’s 2015 consolidated revenues grew 17% year-over-year, and adjusted EBITDA was 25.7%. The acquisistion should expand LightPath’s served available market to $1.7 billion from $800 million. Following increases in demand over the past 18 months, ISP has implemented a major expansion in its diamond turning department, nearly doubling its production capacity.
Jim Gaynor, President and Chief Executive Officer of LightPath said, “The acquisition of ISP Optics will accelerate growth and materially expand our size and, more importantly, our scope of products and capabilities. This acquisition accelerates our global growth strategy."
Source: LightPath Technologies