Optos plans acquisition of Opto Global

Dec 14, 2010

Optos plc plans to acquire the entire issued share capital of Opto Global Holdings Pty Ltd for up to $14.75 million.

Adelaide, South Australia-Optos plc plans to acquire the entire issued share capital of Opto Global Holdings Pty Ltd for up to $14.75 million.

The transaction would bring Optos a revenue-generating business with a strong range of products and a global distribution network, according to the company. In particular, Optos would be able to expand the market for Opto Global’s products in the United States and European Union (EU) markets and also would promote its own products in Opto Global’s international markets in the Far and Middle East, Australasia, Africa, and Latin America.

Optos has made a conditional cash and share offer to the shareholders of Opto Global to acquire the entire issued share capital of the company. If the shareholders of Opto Global do not accept the offer, Optos has agreed with Opto Global to acquire the business and substantially all of the assets of Opto Global, including the shares of its subsidiary undertakings.

Under the offer, Optos would pay Opto Global shareholders $10.75 million in cash on completion of the offer, $1 million via the issuance of new ordinary shares of Optos plc, and contingent cash consideration of up to $3 million based on the achievement of certain revenue-related milestones over the 12-month period beginning in the third month after completion of the offer.

“This acquisition brings a number of complementary products [that] we can market through our sales channel in our core U.S. and E.U. markets,” said Roy Davis, chief executive officer of Optos. “In addition, through this deal we expand our geographic reach into new markets, particularly the Far East, and gain access to a strong distributor network and pipeline of new product opportunities.”

Optos expects the effect of this transaction to be earnings enhancing in the current financial year, Davis added. The acquisition “represents an important step in our journey to becoming a leading provider of diagnostic and treatment solutions to the ophthalmic community,” he said.

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