Photonics, vision, and precision motion company Novanta (Bedford, MA; Nasdaq: NOVT) acquired the remaining approximately 24% of the outstanding shares of Laser Quantum (Manchester, England) for an aggregate consideration of $45.7 million in cash and restricted stock. Laser Quantum supplies solid-state continuous-wave (CW) lasers, femtosecond lasers, and optical light engines for OEMs and the medical market.
Since increasing Novanta's equity stake in Laser Quantum to 76% in January 2017, Laser Quantum has been consolidated in Novanta's consolidated financial statements. The acquisition of the remaining 24% minority interests will be accounted for as a transaction among shareholders. Accordingly, this transaction is not expected to give rise to gain or loss in the consolidated statement of operations.
The total purchase price was financed with cash on hand and borrowings under the Company's amended and restated credit facility, and the issuance of $15.0 million in restricted stock. The restricted stock will become fully vested upon achievement of certain milestones included in the restricted stock agreement. Restricted stock not otherwise vested as of December 31, 2025 will be subject to forfeiture. The transaction is expected to be accretive to Novanta's non-GAAP earnings per share.
"Novanta and Laser Quantum share a common emphasis on providing mission critical technologies to OEMs with medical and life science applications," said Lawrie Gloster, managing director of Laser Quantum. "We are excited to be with Novanta and are looking forward to continuing our work together. Joining Novanta in 2017 accelerated our business growth and expanded our ability to serve customers. The completion of this final step in the transaction deepens these collaborations and enables us to further strengthen our business."
SOURCE: Novanta; https://investors.novanta.com/2018-10-02-Novanta-Acquires-Remaining-Equity-Interest-in-Laser-Quantum
