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  • GSI Lumonics Acquires Dynamics Research Unit
May 2003
BILLERICA, Mass., May 30 -- GSI Lumonics Inc. announced this month it has acquired the principal assets of the encoder division of Dynamics Research Corp., of Wilmington, Mass., for $3.3 million in cash, subject to adjustment and the assumption of certain liabilities.

The integration of the encoder division into GSI Lumonics' Component Products Group in Billerica is scheduled for August.

Charles Winston, GSI Lumonics' CEO and president, said, "This acquisition is consistent with GSI Lumonics' stated strategy to acquire new technologies and expand into new products complementary with its existing markets. The addition of the encoder division assets represents the addition of technology and products that expand the company's offering of precision motion control components. It is currently expected that this acquisition will be accretive to earnings in the fourth quarter of this year."

The product lines acquired with the encoder division have an annualized run rate of sales of approximately $6 million to $7 million.

An optical encoder is a high-resolution, electromechanical feedback device that is a critical part of a precision motion control system. Digital output from the encoder provides real-time position feedback data to a motion control system's electronics. In recent years, advances in microprocessor technology and shrinking microelectronic geometries have stimulated demand for sensors, of which encoders are a specific type. These products are found in aerospace, automotive, medical instrumentation, semiconductor processing and factory automation applications, as well as motion control sub-systems.

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optical encoder
A device designed to measure linear or rotary motion by detection of the movement of markings on a transparent medium past a fixed point of light. The encoder has a moving code plate, a glass disc with positional or angular information -- generally bit information and -- simple geometric optics for readout.
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