Irvine, CA--Newport Corporation (NASDAQ: NEWP) will acquire Ophir Optronics (Jerusalem, Israel), which is well-known for its catalog and custom precision IR optics; its power and energy meters, beam profilers, and other photonic instrumentation; and its 3D noncontact-measurement equipment. Newport will pay $8.43 per share, or a total of $230 million in cash. Subject to customary approvals, the transaction should close in the fourth quarter of 2011.
The acquisition will be completed through a merger of Ophir with a newly formed subsidiary of Newport, with Ophir becoming a wholly owned subsidiary of Newport following the closing. Newport expects the transaction to immediately add to its earnings following the closing.
Ophir is headquartered in Jerusalem and has manufacturing operations in Israel and the U.S. and sales offices in the U.S., Japan, and Europe. For the twelve-month period ended March 31, 2011, Ophir had revenue of $111.8 million and operating income of $12.5 million. For its first quarter ended March 31, 2011, Ophir reported revenue of $30.2 million and operating income of $3.9 million. Over the five year period from 2006 to 2010, Ophir's compound annual growth rate in revenue was approximately 19%. For fiscal year 2010, approximately 48% of its sales were to customers in the U.S., 34% to customers in Israel and Europe, and 18% to customers in Asia. The company has approximately 650 employees worldwide; its shares are publicly traded on the Tel Aviv Stock Exchange under the trading symbol "OPIR".
"The acquisition will greatly strengthen Newport's position as a global leader in photonics instrumentation and provide a platform for us to enter high growth applications in thermal imaging and 3D non-contact measurement," said Robert Phillippy, Newport's president and chief executive officer. "Ophir has a history of impressive revenue growth. Their differentiated technologies, well-respected brands, and strong customer relationships are an excellent fit with Newport's strategic agenda."
"Newport's products and technologies are very well regarded in the global photonics industry and their worldwide distribution network will allow us to expand our business beyond what we could have achieved as a standalone company," noted Yaacov Zerem, chairman and chief executive officer of Ophir Optronics.
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