ESI to Acquire Topwin Optoelectronics for Up to $18M
PORTLAND, Ore., Nov. 14, 2014 — Electro Scientific Industries Inc. (ESI) has entered into an agreement to acquire the Chinese laser design and manufacturing firm Wuhan Topwin Optoelectronics Technology Co. Ltd. for up to $18 million.
Topwin makes midrange lasers for use in consumer electronics manufacturing, including ITO patterning, printed circuit board cutting, precision welding and marking.
ESI will pay $9 million in cash, plus $4.5 million worth of stock to be paid out over three years, according to a document filed with the Securities and Exchange Commission. If Topwin meets financial targets, another $4.5 million worth of stock will be issued.
The acquisition is expected to add approximately $7 million to $10 million in revenue, according to the SEC filing.
"To compete and win in the fast-moving China market, ESI must design, build, and sell locally,” said ESI CEO Edward C. Grady. “The acquisition of Topwin gives us that immediate capability and significantly expands our footprint in China, the largest laser systems market in the world.”
The transaction is subject to government approvals and is expected to close in the first quarter of 2015.
For more information, visit www.esi.com.
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