Precision Optics, a manufacturer of optical instruments for the medical and defence industries, has acquired Lighthouse Imaging, a private equity held company that specialises in optical imaging electronics and system integration.
The total purchase price was $2.85 million in cash along with 2.5 million shares of Precision Optics.
Founded in the late 1980s, Lighthouse Imaging has transitioned its business model in recent years to leverage its optical imaging electronics and systems engineering capabilities to assist medical device companies developing next generation applications. Lighthouse Imaging had revenues of $4.5 million and EBITDA of $232,000 for the 12-month period ended 30 June 2021, with approximately 66 per cent of its revenue attributable to engineering services, and the remainder attributable to production activities.
Precision Optics and Lighthouse Imaging believe up to four new projects should transition from engineering to production in the coming year, providing opportunities for significant growth going forward. Additionally, Lighthouse Imaging has a robust and expanding project pipeline.
Lighthouse Imaging was most recently owned by Anania & Associates Investment Company, a private equity firm focusing on Maine-based companies. Peter Anania, its president and chairman, will join Precision Optics' board of directors. Lighthouse Imaging's management team, including CEOTom Snyder, COO Robert Austring, and CTO Benjamin Gray, have agreed to continue with the combined company.
Along with the purchase price, potential additional payments up to $1.5 million are subject to certain earnout provisions to be evaluated over the next two years. Precision Optics completed an equity capital raise of $1.5 million at a per share price of $1.60 concurrent with the closing of the acquisition and entered into a $2.6 million term loan.
Joe Forkey, president and CEO of Precision Optics, commented: 'This strategic merger expands the depth and breadth of each company's capabilities, and we believe it will enhance our presence in the medical device industry. We expect this combination will accelerate the growth both of our companies have experienced in this market, as we increase our ability to assist our customers in developing next generation applications which are helping to change the future of healthcare.'
Forkey continued: 'We expect this acquisition will be accretive to Precision Optics' profitability per share. Our ability to utilise available bank financing marks a new chapter for our company and we will continue to look to organically and inorganically build capabilities and scale operations to take advantage of robust healthcare and defense markets. Associated with our growth, Precision Optics will resume hosting annual meetings of shareholders in the coming months.'
