Irvine, CA (PressExposure) November 16, 2011 -- Newport Corporation (NASDAQ: NEWP) today reported that it has signed a definitive agreement to acquire Ophir Optronics Ltd. ("Ophir"), a global leader in precision infrared optics, photonics instrumentation and three-dimensional ("3D") non-contact measurement equipment. The consideration to be paid by Newport is $8.43 per share, or a total of approximately $230 million in cash. The transaction is expected to close in the fourth quarter of 2011, subject to receiving required regulatory approvals, the approval of Ophir's shareholders and other customary closing conditions. Newport expects the transaction to be immediately accretive to its earnings following the closing.
Robert J. Phillippy, Newport's President and Chief Executive Officer, said, "We are very excited to have Ophir join the Newport team. This transaction will bring together two industry leaders in photonics technology and will create some very exciting growth opportunities for the combined company. 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. 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. We expect the addition of Ophir to further strengthen our financial model and enable us to achieve even higher levels of profitability and cash generation."
Ophir (http://www.ophiropt.com) is headquartered in Jerusalem, Israel, with manufacturing operations in Israel and the U.S. and sales offices in the U.S., Japan and Europe. Its shares are publicly traded on the Tel Aviv Stock Exchange under the trading symbol "OPIR". 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 year2010, 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.
Dr. Yaacov Zerem, Chairman and Chief Executive Officer of Ophir Optronics, remarked, "We see this merger as an exceptional opportunity to realize value for our shareholders and create opportunities for our customers and employees. 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. I look forward to joining the Newport team."
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.