Information  X 
Enter a valid email address

Oxford Instruments (OXIG)

  Print      Mail a friend

Thursday 10 April, 2008

Oxford Instruments


Oxford Instruments PLC
10 April 2008

April 10, 2008

Oxford Instruments plc

Acquisition of Technologies and Devices International, Inc.

Oxford Instruments plc ("Oxford Instruments" or "the Group"), the high
technology tools and systems company, today announces the acquisition of
Technologies and Devices International, Inc. ("TDI" or "the Company"), a US
based company which is a world leader in the development of Hydride Vapour Phase
Epitaxy (HVPE) technology and processes. Using this technology, Oxford
Instruments intends to produce tools that enable suppliers of High Brightness
Light Emitting Diodes (HBLEDs) to cut manufacturing times by 25%, allowing a
reduction in the production costs of these environmentally friendly devices.

Domestic and commercial lighting made from HBLEDs is currently about 10 times
more efficient than tungsten bulbs and twice as efficient as Compact Fluorescent
Lighting. Analysts predict that the market for HBLEDs will grow at a CAGR of 20%
to 2012.

Oxford Instruments currently sells process tools to complete three of the nine
steps needed to manufacture HBLEDs. This acquisition allows the Group to supply
tools for a fourth step that has historically been the most time consuming and
costly with a unique offering that will greatly enhance production efficiencies.

The consideration consists of an initial payment of US $1.0m cash, plus a cash
earn-out, payable in July 2012 based on the sales of tools in the preceding
financial year. The total consideration is capped at US $6.0m. TDI is currently
owned by private individuals, predominately comprising members of the founder's
family and employees. Oxford Instruments will assume the Company's debts at
acquisition of US $2.2m.

For the year ended 30 June 2007, TDI made a loss before tax of US $0.8m. At 30
June 2007 gross assets were US $1.0m. It is estimated that losses will continue
for the first year of the Group's ownership while process tools are developed
but that the acquisition will be earnings enhancing in the second year.

Jonathan Flint, Chief Executive of Oxford Instruments plc, commented: "The
acquisition of TDI is entirely consistent with the strategy put in place by the
Oxford Instruments Board to acquire complementary technologies to support our
objective to double the size of the Group over five years and improve EBIT
margins by 10 percentage points. TDI is an excellent business with proprietary
technologies in a market that is set to grow very significantly. We will be
among the market leaders in this valuable and vital segment."


Oxford Instruments plc                 Tel: 01865 393 200
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director

Hogarth Partnership                    Tel: 020 7357 9477
Rachel Hirst
Andrew Jaques
Ian Payne

Notes to Editors

Oxford Instruments designs, supplies and supports high-technology tools,
processes and solutions with a focus on physical science, bioscience,
environmental and industrial research and applications. It provides solutions
needed to advance fundamental nanoscience research and its transfer into
commercial nanotechnology applications. Innovation has been the driving force
behind Oxford Instruments' growth and success for over 40 years, and its
strategy is to effect the successful commercialisation of these ideas by
bringing them to market in a timely and customer-focused fashion.

The first technology business to be spun out from Oxford University over forty
years ago, Oxford Instruments is now a global company with over 1,500 staff
worldwide and a listing on the London Stock Exchange (OXIG). Its objective is to
be the leading provider of new generation tools and systems for the Physical
Science and Bioscience sectors.

This involves the combination of core technologies in areas such as low
temperature and high magnetic field environments, Nuclear Magnetic Resonance,
X-ray electron and optical based metrology, and advanced growth, deposition and
etching. Our products, expertise, and ideas address global issues such as
energy, environment, terrorism and health and are part of the next generation of
telecommunications, energy products, environmental measures, security devices,
drug discovery and medical advances.

Technologies and Devices International Inc develops novel technologies and
manufacturing processes for a range of compound semiconductors including GaN,
AlN, AlGaN, InN and In GaN, primarily for applications in solid-state lighting,
short wavelength optoelectronics and RF power electronics.

                      This information is provided by RNS
            The company news service from the London Stock Exchange