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LONDON (Alliance News) - UK photonics company Gooch & Housego PLC said Thursday it has acquired the trade and assets of US-based Gould Technology LLC for USD16.4 million.
G&H said the acquisition will help overcome restrictions in trading in the US for a UK company, taking advantage of Baltimore-based Gould's technology and routes into the aerospace and defence fibre optics market.
"This acquisition enables us to take another step towards diversifying our business, allows G&H access to previously restricted markets, as well as reducing, still further, the company's dependency on what remains a cyclical micro-electronics sector," said Chief Executive Officer Mark Webster.
Of the USD16.4 million acquisition cost, the initial consideration is USD13.0 million. This is funded from a new USD40.0 million revolving credit facility from Royal Bank of Scotland, plus the issuance of 73,183 G&H shares for total value of USD1.4 million.
Gooch & Housego shares were trading down 1.2% at 1,694.70 pence each on Thursday, giving the 73,183 new shares a value of about GBP1.2 million, or about 1.6 million.
In addition, there will be a deferred cash consideration of USD3.4 million which is dependent on Gould's business performance over the coming 12 months.
Gould Technology has annual revenue of USD6.3 million and underlying operating profit of USD1.6 million, Gooch & Housego said. Gross assets acquired were about USD1.5 million.
