Cognex Acquires Vision Sensor Maker

NATICK, Mass., May 10 -- Cognex Corp., a supplier of machine vision systems, announced it acquired DVT Corp., a Duluth, Ga.-based private maker of vision sensors, for $115 million.

Cognex made a cash payment of $104 million at closing and will make a final payment of up to $11 million at the end of a one-year escrow period. The acquisition was completed Monday.

Cognex said it will maintain operations at DVT's facility in Georgia and will continue to sell and support DVT's vision products through its existing third-party distribution channel.

DVT sells its sensors primarily to the factory-floor segment of the machine vision business. Its principal product, Legend, is used in a variety of industries for applications such as inspection and quality control.

"This is the largest acquisition that Cognex has ever completed . . . in terms of price, in terms of revenue and most importantly, in terms of the positive impact it will likely have on our company," said Robert J. Shillman, chairman and CEO of Cognex.

"In recent years, Cognex has been very successful in expanding its product line by adding low-cost and easy-to-use vision products," he said. "However, reaching the thousands of prospects for these products in factories around the world requires a large third-party sales and distribution channel to supplement our own direct end-user sales force."

Cognex began building a third-party distribution channel in 2004, and prior to this acquisition had signed over 40 distributors, mostly in North America. With the acquisition of DVT, Cognex will gain more than 150 additional industrial distributors, all trained in selling and supporting machine vision products, Shillman said.

As a result of the acquisition, Cognex said, it expects an increase in its revenue of approximately $15 million to $20 million during fiscal year 2005. The acquisition is expected to be neutral to earnings in 2005, and accretive, even including acquisition charges, in fiscal year 2006. Cognex said it expects the acquisition to have minimal impact on its second quarter results.

For more information, visit: www.cognex.com