The purchase agreement is subject to satisfactory completion of due diligence by Metris and certain closing conditions, which also will determine the final price to be paid. Since July 2006, the Virtek iLS division, a developer of precision laser based technologies for the aircraft manufacturing industry, has been acting as the integrator for Metris' iGPS and Laser Radar technology. iLS contributed approximately $4.7 million to Virtek's total sales of $63.8 million for the fiscal year ended January 31, 2007.
"The decision to sell iLS is consistent with our strategy to focus on Virtek's Marking & Engraving business as the area offering our company the best opportunities for consistent growth and profitability. Our Marking & Engraving sales grew more than 28 percent in fiscal 2007 and 44 percent in the first quarter of the current fiscal year," said Bob Sandness, president and CEO.
The iLS operations are based in Waterloo, Ontario, and currently employ 24 people. "We understand that it is Metris' intention to maintain the current operations in Waterloo and to retain all of its employees who have contributed to the development and success of this business on an international scale," Sandness said.