Novanta's stake in Laser Quantum increased to 75 per cent
Novanta, a global supplier of medical and industrial photonics technologies formally known as GSI group, has increased its equity share of UK-based Laser Quantum from 41 to around 75 per cent. The move, which makes Laser Quantum a consolidated subsidiary of Novanta, will allow the company to more effectively serve the medical and life sciences markets.
35 per cent of Laser Quantum's outstanding shares were bought by Novanta for £25.5 million in cash, and are expected to add approximately $25 million in revenue to the firm's financial results on a full year pro forma basis.
Novanta CEO Matthijs Glastra commented: ‘Laser Quantum increases Novanta's breadth and technology capability in photonics solutions for medical applications. Particularly, it gives Novanta a significant presence in the growing DNA sequencing market, a technical subsystem capability in software-controlled integration, while also providing the company with key enabling photonics-based technologies for instrumentation and life sciences applications such as biomedical imaging, cell sorting, and ophthalmology.’
Novanta's purchase of the incremental 35 per cent stake will lead Laser Quantum to becoming a consolidated subsidiary of Novanta and the remaining 24 per cent stake in Laser Quantum will be reported as minority interests. A call and put option for minority shareholders to purchase the remaining outstanding shares of Laser Quantum by 2020 has been entered by the two companies.
Novanta has been in a close collaboration with Laser Quantum for more than 10 years. According to Glastra, the incremental acquisition is a natural evolution in the partnership between the two companies. ‘We see strong potential in selling the combined product offerings of both companies to each company's customer base,’ he concluded.