February 17, 2005, Waterloo, Ontario and Montreal, Quebec, Canada--DALSA and Coreco announced that they have entered into an arrangement agreement, pursuant to which DALSA will acquire all of the issued and outstanding shares of Coreco, subject to certain conditions, including regulatory approvals.
The transaction will be completed by way of plan of arrangement. The arrangement has the unanimous support of the board of directors of each of DALSA and Coreco. The transaction, which combines Coreco's industry leading vision processors, software, and smart camera technology with DALSA's high performance image sensor chips and digital cameras, will create a company that is well positioned to lead the convergence of technologies in the high performance digital imaging and machine vision marketplace.
The transaction is expected to close in late April and be accretive to earnings to DALSA in 2005. CIBC World Markets Inc. acted as financial advisor to DALSA for the transaction.
"Today's agreement combines two Canadian companies with excellent fundamentals, solid management and strong technology," commented Savvas Chamberlain, CEO of DALSA. "I am particularly excited about the opportunity for the 'new DALSA' to take a leadership role in the convergence of technologies that is rapidly occurring in our industry. By combining Coreco's vision processing and software expertise with DALSA's CCD and CMOS image sensor technology we have the unique opportunity to develop innovative and high-value products that will allow us to compete even more successfully worldwide."
"This agreement fulfills Coreco's long-stated strategy of gaining access to sensor technology and furthering our capabilities for smart cameras," added Keith Reuben, president & CEO, Coreco. "In the short-term, both companies will benefit from matching Coreco's products with DALSA's image sensor and camera technology to address specific needs in flat panel display inspection, an expanding end market in which both companies are particularly strong. Longer-term, the opportunities to collaborate are equally significant and will enhance the overall competitiveness of the combined business." Mr. Reuben will join DALSA as president of "DALSA Coreco", reporting to Savvas Chamberlain, CEO of DALSA Corporation.