Radiant Imaging and Zemax Development Corporation, both based in Washington, USA, have completed a merger, backed by capital from Evergreen Pacific Partners, a Washington-based private equity fund. The merger will enable both companies to better serve and grow existing markets for their products, and to create new products to meet growing global demand in the photonics and optics industries. As part of the merger, Paul Caragher, who most recently was president of Tektronix Service Solutions, a leading test and measurement services provider, will become chief executive of the combined companies.
Radiant Imaging is a leading test and measurement business for measuring light and colour. Its systems are used in lab and production environments worldwide for products such as flat panel displays, laptops, phones, stadium screens and LED devices. Zemax offers engineers and designers a platform for creating optical systems, including lenses, cameras, projectors, scopes and instruments; its software allows optical developers to quickly optimise designs to maximise performance while meeting cost requirements. According to Evergreen, the lighting market is undergoing a significant shift to more energy efficient LED lights, and devices such as tablets and smartphones are expected to proliferate in 2011 and beyond. By combining their expertise and resources, Radiant and Zemax will offer a powerful, end-to-end solution for developers designing, testing and producing the next generation of display devices and LED lighting.
'We will be able to grow faster and go farther together,' said Ron Rykowski, founder and CEO of Radiant. 'With access to capital from Evergreen and economies of scale, we can develop integrated solutions that deliver increased value to customers and generate new revenue opportunities for the company.'
In the short term, the combined companies will be located in a single facility in Redmond, Washington and operate under their respective brands, while expanding customer outreach and technical support functions and beginning to integrate their technologies. Founders of both companies are remaining in executive leadership and product development roles with a goal of dramatic company expansion in the next three to five years through organic growth as well as strategic acquisitions. Ken Moore, founder and CEO of Zemax, elaborated: 'The long term potential in this industry is immense, but serving it will require a truly global company. This merger will allow us to transform into a global optics design, test and measurement leader with the infrastructure and capacity to serve our customers where they are – which is increasingly in Asia.'
The combined entities will be led by new CEO Paul Caragher, who recently served as president of Fluke Networks and Tektronix Service Solutions, both owned by Danaher Corporation. Caragher’s prior experience includes Hach-Lange, a manufacturer of water testing instruments and systems, and international experience working for General Motors Corporation’s Latin America, Africa, and Middle East Operations.
Evergreen Pacific Partners manages two private equity funds totalling $700 million and invests in traditional buyouts, management led buyouts, and growth equity investments involving traditional industry, middle-market companies in the Western US and Canada.