INDUSTRY NEWS

GSI acquires Jadak for $93.5m to strengthen medical presence

5 March 2014



GSI Group has reached a deal to buy Jadak Technologies and Jadak, a North Syracuse, New York-based provider of optical data collection and machine vision technologies to OEM medical device manufacturers.

GSI bought the company for $93.5 million in cash. The transaction, which is subject to certain regulatory reviews and customary closing conditions, is expected to close in March, 2014.

‘Our agreement to acquire Jadak represents another significant milestone in GSI's strategy to broaden our presence in the medical market. We are positioning GSI as a supplier of critical enabling technologies to major manufacturers of medical equipment,’ said John Roush, CEO of GSI.

Jadak is a leading supplier of camera-based technologies, which reduce medical errors and enhance safety in a wide range of medical equipment. The agreement is the latest step in GSI’s strategy to offer a broader range of highly engineered enabling technologies to leading medical equipment manufacturers.

The addition of the Jadak technology platforms will expand GSI's portfolio of highly-differentiated enabling technologies to over a dozen distinct product families, which are sold into more than twenty medical applications.

Jadak’s technology consists of barcode components and scanners, machine vision cameras, RFID technology, magnetic stripe readers, portable platforms and associated software. They are used in medical equipment to increase safety and reduce medical errors by verifying patient identity, validating the specified therapy or function and enhancing the accuracy of the medical procedure.

Jadak has doubled its revenue over the last five years, through a combination of market growth, as these technologies have been adopted across a wider range of medical equipment, and through increases in Jadak’s penetration of these applications.

Roush said: ‘With more than $170 million of GSI's pro forma revenue expected to come from the medical market, the acquisition will be a significant step for us in achieving our strategic goals.’

The total purchase price of $93.5 million will be financed using a combination of cash on hand and GSI’s $215.6 million newly amended credit facility. In addition to the total purchase price, GSI will grant restricted stock units (RSUs) in an aggregate of 180,000 shares to the four owner managers of the business.

Following the expected close of this transaction in March 2014, GSI expects to end the first quarter of 2014 with approximately $140 million of gross debt, and slightly more than $100 million of net debt.

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GSI Group
Jadak