Ophir Optronics Ltd. (TASE:OPIR) has been acquired by Newport Corporation (Nasdaq: NEWP) for $230 million in cash, at $8.43 per share.
Ophir Optronics' share price rose 35% in early trading today to NIS 20.15, giving a market cap of NIS 500 million. First Israel Mezzanine Investors Fund (FIMI) is the company's largest shareholder with a 20.31% stake. Irvine, California-based Newport Corporation has a market cap of $717 million.
Jerusalem-based Ophir will become a wholly owned subsidiary of Newport and merge with a newly formed Newport subsidiary. The companies expect to close the deal during the fourth quarter of this year.
Ophir Optronics develops and manufactures optical equipment for the defense and civilian markets. The company has plants in Israel and the US, and sales offices in the US, Japan, and Europe. 48% of sales in 2010 were in the US, 34% in Israel and Europe, and 18% in Asia. It has 650 employees worldwide. The company posted an operating profit of $12.5 million on $111.8 million revenue in the 12 months through the first quarter of 2011, including an operating profit of $3.9 million on $30.2 million revenue in the first quarter.
Ophir Optronics chairman and CEO Dr. Yaacov Zerem said, "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."
Newport president and CEO Robert J. Phillippy said, "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."
Published by Globes [online], Israel business news - www.globes-online.com - on July 10, 2011
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