15 Jul 2008
The acquisition pushes GSI Group into non-semiconductor markets and new Asian territories.
“I view this as a transformational event for GSI.”
Hot on the heels of GSI Group's sale of its General Optics business to Gooch & Housego, GSI has now acquired Excel Technology. The transaction was considerably larger than the General Optics deal, and is valued at approximately $360 million.
"I view this as a transformational event for GSI," commented GSI's CEO Sergio Edelstein to investors. "This acquisition nearly doubles the revenues of GSI's Precision Technology segment. It expands very significantly our presence in several of our most attractive non-semiconductor markets, especially in lasers and precision motion components."
GSI executives stressed the complimentary nature of the two companies' products and their combined reach into Asian markets as key features of the deal. "The ultra fast laser technology in Excel Technology's portfolio complements GSI's industrial YAG and fibre lasers," said Edelstein. "Together we can offer a full suite of key laser technologies to customers."
According to GSI, its customers in key Asian markets will now be offered a considerably expanded product portfolio, introducing Excel's non-semiconductor lasers. In turn, South East Asia territories will open up for GSI's range of motion control systems and other laser products. "We anticipate significant cross selling of products into each other's customer bases, as well as considerable market expansion," commented Robert Bowen, GSI's chief financial officer.
The acquired Excel business will form part of GSI's Precision Technology segment, and Edelstein did not anticipate any difficulties integrating the purchased company. "All of the businesses brought in by the Excel acquisition are non-semiconductor businesses that expand our portfolio," he said. "They will form part of the existing GSI Precision Technology operation, and we have no plans to create a new business sector or change the way we report results."
Bringing in Excel Technology and its non-semiconductor businesses effectively reduces GSI's interests in semiconductor-related markets, which will now account for approximately 20% of the combined companies' operations according to Edelstein.