Novanta Inc. (Nasdaq: NOVT), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that it has acquired the remaining approximately 24 percent of the outstanding shares of Laser Quantum for an aggregate consideration of $45.7 million in cash and restricted stock.
Laser Quantum, based in Manchester, United Kingdom, is the leading supplier to original equipment manufacturers (OEMs) of solid state continuous wave lasers, femtosecond lasers, and optical light engines for the medical market.
As a result of increasing Novanta's equity stake in Laser Quantum to 76% in January 2017, Laser Quantum has been consolidated in Novanta's consolidated financial statements. The acquisition of the remaining 24 percent minority interests will be accounted for as a transaction among shareholders. Accordingly, this transaction is not expected to give rise to gain or loss in the consolidated statement of operations.
The total purchase price was financed with cash on hand and borrowings under the Company's amended and restated credit facility, and the issuance of $15.0 million in restricted stock. The restricted stock will become fully vested upon achievement of certain milestones included in the restricted stock agreement. Restricted stock not otherwise vested as of December 31, 2025 will be subject to forfeiture. The transaction is expected to be accretive to Novanta's non-GAAP earnings per share.
"Novanta and Laser Quantum share a common emphasis on providing mission critical technologies to OEMs with medical and life science applications," said Lawrie Gloster, Managing Director of Laser Quantum. "We are excited to be with Novanta and are looking forward to continuing our work together. Joining Novanta in 2017 accelerated our business growth and expanded our ability to serve customers. The completion of this final step in the transaction deepens these collaborations and enables us to further strengthen our business."
About Novanta
Novanta is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary technology expertise and competencies in photonics, vision, and precision motion with a proven ability to solve complex technical challenges. This enables Novanta to engineer core components and sub-systems that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation and customer success. Novanta's common shares are quoted on Nasdaq under the ticker symbol "NOVT."
