Orbotech Pays $30 Million for Gamma Camera Business
August 8, 2007 - Orbotech Ltd. announced that it has signed a definitive agreement to acquire 3D - Danish Diagnostic Development A/S (DDD), a privately-held Danish company that develops and manufactures gamma cameras for nuclear medicine, as part of a strategy to generate a projected $30 million in annual revenues, which is expected to be immediately accretive to Orbotech on a non-GAAP basis.
DDD is the world's leading manufacturer of cardiac gamma cameras, which it markets primarily in the United States through major industry suppliers that distribute them under their own brands.
Orbotech will pay approximately $39 million to the stockholders of DDD for the acquisition of all of the outstanding shares of DDD. In addition, Orbotech will pay to the stockholders of DDD an earn-out, capped at approximately $6.5 million, based on DDD's performance during the years 2007 and 2008. The acquisition will be financed from internally-generated funds.
CEO of Orbotech Rani Cohen said, "This acquisition is an important step in our strategy for growth and diversification into medical imaging as an original equipment manufacturer (OEM) of highly innovative technologies. DDD is an exceptional company with highly talented employees, world-class know-how and products whose outstanding caliber is recognized by the largest players in the industry. Moreover, the acquisition presents an opportunity for Orbotech to leverage its strong operational capabilities and resources." Mr. Cohen added: "The medical imaging industry presents solid growth drivers that will complement and balance Orbotech's core electronics business and deliver immediate and future value to our shareholders."
Following completion, DDD will form part of Orbotech's medical imaging operations.
For more information: www.orbotech.com