LightPath Technologies, a global manufacturer, distributor, and integrator of optical and infrared components, has completed an $18 million acquisition of ISP Optics, a producer of infrared optical components.
The acquisition will expand LightPath’s infrared market reach to include Asia, North America and Europe, and increase the company’s served available market from $800 million to $1.7 billion.
'The collective technological capabilities of LightPath and ISP position us for continued high growth, with concentration in key markets for infrared sensors, global military electro-optical infrared products and infrared imaging cameras,' commented Mark Lifshotz, CEO of ISP.
Jim Gaynor, president and CEO of LightPath, added: ‘The acquisition of ISP Optics will accelerate growth and materially expand our size and, more importantly, our scope of products and capabilities. Bringing together the two companies creates substantial synergies, such as the… expansion of each company’s distribution channels benefiting from LightPath’s strong Asian presence and ISP’s strong European presence, leveraging the value of combining moulded and turned product designs.’
$12 million of the $18 million used to acquire ISP was paid in cash, obtained in part by an underwritten public offering of eight million shares of LightPath’s Class A common stock at $1.21 per share. Net proceeds from the sale of the stock were approximately $8.85 million.
Further contribution to the total $12 million cash spent in the acquisition was made by a $5 million acquisition loan from Avidbank. The loan will be payable on an interest-only basis for six months and thereafter amortised over 54 months.
Commenting on the completed transactions, Gaynor said: ‘We are excited to have consummated the acquisition of ISP Optics Corporation as planned and welcome ISP employees to the expanding global LightPath team…The combination of LightPath and ISP positions us for continued growth with greater scale and scope to offer a comprehensive platform of visible and infrared solutions.’