Oxford Instruments offloads loss-making subsidiary

High-tech tool manufacturer Oxford Instruments is selling its loss-making TDI subsidiary to US display technologies firm Ostendo, though it will retain the rights to royalties on sales of items using TDI's technology.

Oxford Instruments has transferred its ownership of TDI, a wholly owned subsidiary which develops hydride vapour phase epitaxy (HVPE) technology for use in the production of high brightness light emitting displays (LEDs), to Ostendo, a privately owned company based in California. In return for this, Oxford Instruments has received 0.65m shares of Ostendo common stock plus $0.65m in cash, of which $0.15m will be paid six months after the closing date of the deal. Oxford Instruments will also receive a royalty when certain HVPE reactor sales are realised.

The cash component of the proceeds of the disposal will be used in Oxford Instruments' existing business.

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The gross assets which are the subject of the transaction are $0.6m. TDI had a loss after development expenses in the year to March 2011 of $4.3 million including amortisation of acquired intangible assets of $1.9 million.

Chief Executive, Jonathan Flint, said: "The capability to produce semiconductor materials using HVPE has the potential to improve products used in solid state lighting and displays. Ostendo are well placed to use this technology and Oxford Instruments is delighted that it will continue to be developed by them. This partnership with Ostendo should allow us to maximise value from our technology investment in HVPE."

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