Fibre laser expert IPG Photonics has signed an agreement to acquire laser system manufacturer Innovative Laser Technologies (ILT) for $40 million, a move that accelerates IPG's ability to deliver products for the medical device industry. The transaction will be paid entirely in cash and is expected to close early July 2017.
ILT manufactures systems used to produce high-value components for the medical device industry. The company has approximately 60 employees and made $22 million in revenue in 2016. IPG has supplied laser sources to ILT over the last several years and is acquiring the firm from the Generation Growth Capital Fund II, L.P. The acquisition is expected to be neutral to IPG's earnings per diluted share for 2017.
‘ILT has a proven track record producing leading-edge systems for medical device manufacturers, one of the fastest growing markets for fine welding and cutting applications,’ commented Dr Valentin Gapontsev, CEO of IPG Photonics. ‘The addition of ILT's automation and application expertise and best-in-class specialty software will allow IPG to deeply penetrate medical device applications and accelerate expansion into the many non-medical device applications requiring precision laser solutions.’
Earlier this year IPG also aquired OptiGrate for an undisclosed amount in order to strengthen its ultrafast laser business, and Menara Networks the year before for $46.8 million to improve its telecom offerings. The company managed to exceed $1 billion in annual sales in 2016, after reporting strong growth in China, Europe, Russia and Japan.