10 Apr 2008 07:01
Oxford Instruments PLC10 April 2008 April 10, 2008 Oxford Instruments plc Acquisition of Technologies and Devices International, Inc. Oxford Instruments plc ("Oxford Instruments" or "the Group"), the hightechnology tools and systems company, today announces the acquisition ofTechnologies and Devices International, Inc. ("TDI" or "the Company"), a USbased company which is a world leader in the development of Hydride Vapour PhaseEpitaxy (HVPE) technology and processes. Using this technology, OxfordInstruments intends to produce tools that enable suppliers of High BrightnessLight Emitting Diodes (HBLEDs) to cut manufacturing times by 25%, allowing areduction in the production costs of these environmentally friendly devices. Domestic and commercial lighting made from HBLEDs is currently about 10 timesmore efficient than tungsten bulbs and twice as efficient as Compact FluorescentLighting. Analysts predict that the market for HBLEDs will grow at a CAGR of 20%to 2012. Oxford Instruments currently sells process tools to complete three of the ninesteps needed to manufacture HBLEDs. This acquisition allows the Group to supplytools for a fourth step that has historically been the most time consuming andcostly with a unique offering that will greatly enhance production efficiencies. The consideration consists of an initial payment of US $1.0m cash, plus a cashearn-out, payable in July 2012 based on the sales of tools in the precedingfinancial year. The total consideration is capped at US $6.0m. TDI is currentlyowned by private individuals, predominately comprising members of the founder'sfamily and employees. Oxford Instruments will assume the Company's debts atacquisition of US $2.2m. For the year ended 30 June 2007, TDI made a loss before tax of US $0.8m. At 30June 2007 gross assets were US $1.0m. It is estimated that losses will continuefor the first year of the Group's ownership while process tools are developedbut that the acquisition will be earnings enhancing in the second year. Jonathan Flint, Chief Executive of Oxford Instruments plc, commented: "Theacquisition of TDI is entirely consistent with the strategy put in place by theOxford Instruments Board to acquire complementary technologies to support ourobjective to double the size of the Group over five years and improve EBITmargins by 10 percentage points. TDI is an excellent business with proprietarytechnologies in a market that is set to grow very significantly. We will beamong the market leaders in this valuable and vital segment." Enquiries: Oxford Instruments plc Tel: 01865 393 200Jonathan Flint, Chief ExecutiveKevin Boyd, Group Finance Director Hogarth Partnership Tel: 020 7357 9477Rachel HirstAndrew JaquesIan Payne Notes to Editors Oxford Instruments designs, supplies and supports high-technology tools,processes and solutions with a focus on physical science, bioscience,environmental and industrial research and applications. It provides solutionsneeded to advance fundamental nanoscience research and its transfer intocommercial nanotechnology applications. Innovation has been the driving forcebehind Oxford Instruments' growth and success for over 40 years, and itsstrategy is to effect the successful commercialisation of these ideas bybringing them to market in a timely and customer-focused fashion. The first technology business to be spun out from Oxford University over fortyyears ago, Oxford Instruments is now a global company with over 1,500 staffworldwide and a listing on the London Stock Exchange (OXIG). Its objective is tobe the leading provider of new generation tools and systems for the PhysicalScience and Bioscience sectors. This involves the combination of core technologies in areas such as lowtemperature and high magnetic field environments, Nuclear Magnetic Resonance,X-ray electron and optical based metrology, and advanced growth, deposition andetching. Our products, expertise, and ideas address global issues such asenergy, environment, terrorism and health and are part of the next generation oftelecommunications, energy products, environmental measures, security devices,drug discovery and medical advances. Technologies and Devices International Inc develops novel technologies andmanufacturing processes for a range of compound semiconductors including GaN,AlN, AlGaN, InN and In GaN, primarily for applications in solid-state lighting,short wavelength optoelectronics and RF power electronics. This information is provided by RNS The company news service from the London Stock Exchange