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LONDON (Alliance News) - Photonics technology manufacturer Gooch & Housego PLC said Wednesday it has acquired medical devices firm VITL Ltd for up to GBP22.0 million.
VITL provides medical and in vitro diagnostic devices and will expand the life sciences exposure of Gooch & Housego. In time, Gooch & Housego will leverage VITL's footprint in the US, China and the Far East to combine its own photonic expertise with the medical devices business.
Gooch & Housego will pay an initial GBP14.0 million. This will primarily be funded through cash as well as GBP1.4 million through the issue of shares. A further GBP8.0 million deferred consideration will be paid dependant on performance over the next two years.
To satisfy the initial share consideration, Gooch & Housego will issue 92,684 shares. Admission to trading is expected next Tuesday.
"This acquisition provides a key step towards achieving our strategic aims of establishing 'critical mass' in our life sciences business and moving up the value chain, through a more systems based product portfolio," Gooch & Housego Chief Executive Officer Mark Webster said.
"It means we are able to continue to diversify our business, allow G&H access to new high growth markets, as well as reducing, still further, dependency on the historically cyclical micro-electronic sector," Webster added.
Shares in Gooch & Housego were 2.5% higher at 1,538.00 pence on Wednesday.
