Axsys Buys Cineflex for $27M
ROCKY HILL, Conn., April 13, 2007 -- Optical and motion control systems maker Axsys Technologies Inc. announced yesterday that it has acquired privately held gyrostabilized camera maker Cineflex LLC for $27 million in cash.
Cineflex makes highly stable, multisensor, multiaxis aerial surveillance platforms used in law enforcement and the motion picture and electronic news gathering industries. The company employs approximately 25 people at its Grass Valley, Calif. headquarters; total revenue for 2006 was $8.7 million.
Rocky Hill-based Axsys, a supplier of surveillance systems to the defense and homeland security markets, said it will create a new market for both companies by combining Cineflex's stabilization technology with its own visible and infrared optics and cameras to develop high-performance, military-grade airborne systems for surveillance and reconnaissance.
Stephen W. Bershad, chairman and CEO of Axsys Technologies, said in a statement that the acquisition is expected to generate $11 million for Axsys in 2007 and will be moderately accretive to earnings.
John Coyle, founder of Cineflex and co-owner, said, "The entire Cineflex team is excited to be joining Axsys Technologies. The technical fit could not be better."
Axsys said it could pay as much as $42.5 million for Cineflex if the company meets certain revenue goals over the next three years. If revenue in the fourth year exceeds $40 million, Axsys could make an additional payment of up to 10 percent of all revenue recognized from multiyear orders in backlog at the end of the earn-out period.
For more information, visit: www.axsys.com