Oxford Instruments acquires Asylum Research for 80 million dollars

High technology tools and systems provider Oxford Instruments has announced the acquisition of microscope provider Asylum Research Corporation.

High technology tools and systems provider Oxford Instruments has announced the acquisition of microscope provider Asylum Research Corporation.

The acquisition is subject to customary conditions and is expected to be completed before the end of December 2012.

Asylum is being acquired from its management for an initial debt free, cash-free consideration of $32.0 million with a deferred element of up to $48.0 million payable over three years dependent on its performance over that period.

Asylum Research generated Earnings Before Interest and Taxation (EBIT) of $1.1 million in the twelve months to December 31 2011 from revenue in the same period of $19.6 million. It had gross assets of $6.2 million as at December 31 2011. The acquisition will be funded from existing facilities.

Based in Santa Barbara, California, Asylum Research is an established US company with subsidiaries in the UK, Germany and Taiwan. Its scanning probe microscopes technology is used by academic and industrial customers for a wide range of materials and bioscience applications.

The acquisition of Asylum Research is in line with Oxford Instruments' 14 Cubed objectives, to achieve a 14% average compound annual growth rate in revenues and a 14% return on sales by the year ending March 2014.

This acquisition contributes to the planned acquisition element of the revenue growth objective. While Asylum Research is expected to deliver less than the 14% targeted margin in this and the next financial year, following the acquisition the 14 Cubed margin target for the Group remains unchanged.

Commenting on the acquisition, Jonathan Flint, Chief Executive Officer of Oxford Instruments, stated:

"The acquisition of Asylum Research significantly increases our footprint in the nanotechnology space and complements our strong position in electron microscopes with a presence in another fundamental nanotechnology measurement technique.

"The acquisition also gives us access to the rapidly growing bio-nano market as it allows customers to perform analysis of organic samples in their natural liquid environments, something which cannot readily be done using electron microscopes."

RF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021