Oxford technology firm makes US aquisition
An Oxford-based technology business has announced a $32m deal to acquire the US firm, Asylum Research.
The acquired company, based in California, provides instruments for the nanoscience and nanotechnology sectors, and uses “SPM technology” to take images of surfaces and structures at an atomic scale.
Oxford Instruments, which provides technology tools for industry and research companies, purchased Asylum Research as part of its ongoing acquisition strategy.
The firm hopes to reach a 14% average compound annual growth rate in revenues, and a 14% return on sales by March 2014, while the deal will strengthen the company’s offering in the nanotechnology sector.
A cash free consideration of $32m was made for the company, with a deferred element of up to $48m, which will be payable over three years depending on the acquired firm’s performance.
Oxford Instruments hopes to push the acquired firm’s end markets considerably and make marked improvements in the company’s margins over time.
With 60% of Asylum Research’s revenue coming from the materials science sector, Oxford Instruments will bolster its existing customer base which also resides in this area.
Jonathan Flint, Chief Executive of Oxford Instruments, commented: “The acquisition of Asylum Research significantly increases our footprint in the nanotechnology space and complements our strong position in electron microscopes with a presence in another fundamental nanotechnology measurement technique.
“The acquisition also gives us access to the rapidly growing bio-nano market as it allows customers to perform analysis of organic samples in their natural liquid environments, something which cannot readily be done using electron microscopes.”
The deal announced on Monday is expected to be completed by the end of December this year, and was funded by existing facilities from within Oxford Instruments.
This was posted in Bdaily's Members' News section by Miranda Dobson .
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