Laird takes over Nextreme
By BFN News | 02:56 PM | Wednesday 13 February, 2013
Laird has taken over Nextreme Thermal Solutions, the US-based developer of thin-film thermoelectric technologies.
Nextreme's innovative technology, delivering high precision cooling in an ultra-small form factor, will advance Laird's leadership in its existing thermal management business.
Nextreme and Laird currently have a strategic design and distribution partnership, but the acquisition enables wider market access to serve current and potential new customers in application areas such as sensors, solar power and LEDs.
In addition Laird provides the ability to rapidly scale-up Nextreme's operations in order to exploit the full potential of these next generation products.
Laird will acquire 100% of the equity of Nextreme for a cash cost of $1, with potential cash earn-out payments based on a multiple of 0.4 times revenue over a four year period from 2014 (capped at $60m if $150m in revenue is achieved).
In 2013, Nextreme is expected to make a loss of $3m as the company moves from technology investment to mass production. Nextreme's products and staff will be integrated into Laird's existing Thermal business unit.
Laird chief executive David Lockwood said: "Nextreme is the next generation in technology for thermoelectrics. It can fundamentally change the way we cool electronics at the most integrated levels while being produced in large volumes. This significant shift in technology will also enable new applications such as energy harvesting.
"Nextreme is an excellent fit with our business growth strategy. Through this acquisition we will combine the most innovative technology with our market presence and ability to scale operations, to deliver added value to our customers and enable us to move into new segments."
At 2:56pm: (LON:LRD) share price was +6p at 241.3p
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