IPG Photonics Expands Integrated Laser Systems Offerings with Acquisition of JPSA Laser
Acquisition Accelerates Penetration to Fine-Processing Markets
OXFORD, Mass.--(BUSINESS WIRE)--
IPG
Photonics Corporation (NASDAQ: IPGP) today announced the acquisition
of privately held New Hampshire-based J.P.
Sercel Associates Inc. (JPSA), a
leading global supplier of UV excimer and diode pumped solid state
(DPSS) industrial laser micromachining systems for precision processing
in high-volume manufacturing. JPSA is anticipated to add approximately
$4 million to IPG's revenues for the remainder of 2012. At current
revenue levels, the acquisition is expected to be dilutive by $0.01 to
$0.02 per share in 2012, and is expected to be accretive in 2013.
Financial terms were not disclosed. The acquired business will operate
under the name IPG Microsystems LLC.
The acquisition enables IPG to expand its integrated laser systems
product offerings for fine-processing, precision cutting, drilling and
micromachining of non-metals, including glass, semiconductors and
ceramics. JPSA's systems perform advanced laser micromachining, micro
cutting, scribing and laser lift-off for semiconductors, microfluidics,
LEDs, thin film solar panels, micro-electro-mechanical systems (MEMs),
biomedical technology and industrial automation applications.
"This acquisition broadens our customized laser-based systems offerings
and provides significant sales synergies," said Dr. Valentin Gapontsev,
IPG Photonics Chief Executive Officer. "The combination of JPSA's
specialized laser systems and the UV and short pulse fiber lasers that
IPG is developing now should allow us to deepen our penetration of the
$800 million fine-processing market. At the same time, we plan to
capitalize on opportunities to expand the global reach of JPSA's
products through IPG's extensive sales and service network. In addition,
we expect that the development expertise of the very experienced JPSA
team would benefit our capabilities in other micromachining
applications."
"Strong demand exists for better quality short-wavelength and short
pulse width laser sources in applications addressed by JPSA's products,"
commented Jeff Sercel, CEO and Chief Technology Officer of JPSA. "While
we will continue to sell our UV and excimer laser systems, as well as
systems which use DPSS lasers, we strongly believe there are significant
growth opportunities using advanced fiber lasers to displace traditional
laser sources in high growth applications. Together, we will be able to
sell into new applications, expand geographically and accelerate into
markets where there are needs for advanced fiber laser technology. We
look forward to being productive members of the IPG Photonics team."
About JPSA Laser
JPSA is a leading supplier of industrial grade UV excimer, DPSS, and
Pico-second laser micromachining systems and materials processing
services to customers worldwide. The Company's key applications include
advanced automated systems for laser scribing and lift-off (LLO) of
LEDs, thin film solar scribing, semiconductor, MEMs, research,
biomedical, and industrial micromachining. JPSA's novel laser systems
operate at wavelengths from 157nm to 1064nm, and are essential to a
growing set of today's industrial micromachining applications. JPSA's
experienced team of scientists and engineers work together in its
applications lab to develop new techniques in laser-material interaction
and high productivity laser systems and automation. JPSA is located in
Manchester, New Hampshire. For more information, please visit www.jpsalaser.com.
About IPG Photonics Corporation
IPG
Photonics Corporation is the world leader in high-power fiber lasers
and amplifiers. Founded in 1990, IPG pioneered the development and
commercialization of optical fiber-based lasers for use in diverse
applications, primarily materials
processing. Fiber lasers have revolutionized the industry by
delivering superior performance, reliability and usability at a lower
total cost of ownership compared with conventional lasers, allowing end
users to increase productivity and decrease operating costs. IPG has its
headquarters in Oxford, Massachusetts, and has additional plants and
offices throughout the world. For more information, please visit www.ipgphotonics.com.
Safe Harbor Statements
Information and statements provided by the Company and its employees,
including statements in this press release, that relate to future plans,
events or performance are forward-looking statements. These statements
involve risks and uncertainties. Any statements in this press release
that are not statements of historical fact are forward-looking
statements, including, but not limited to, JPSA's anticipated revenues
for the remainder of 2012, the dilutive effect of the acquisition, that
the transaction is expected to be accretive in 2013, the acquisition
enabling IPG to expand its integrated laser systems product offerings
for fine-processing, precision cutting, drilling and micromachining, the
acquisition broadening IPG's customized laser-based systems offerings
and providing significant sales synergies, the combination of JPSA's
specialized laser systems and the UV and short pulse fiber lasers that
IPG is developing allowing IPG to deepen its penetration of the fine
processing market, capitalizing on opportunities to expand the global
reach of JPSA's products, the development expertise of the JPSA team
benefitting IPG's capabilities in other various micromachining
applications, being able to sell into new applications, expand
geographically and accelerate into markets where there are needs for
advanced fiber laser technology. Factors that could cause actual results
to differ materially include risks and uncertainties, including risks
associated with business acquisitions and integration, risks associated
with the strength or weakness of the business conditions in industries
and geographic markets that the Company serves, particularly the effect
of economic downturns; reduction in customer capital expenditures;
potential order cancellations and push-outs and financial and credit
market issues; the Company's ability to penetrate new applications for
fiber lasers and increase market share; the rate of acceptance and
penetration of IPG's products; effective management of growth; level of
fixed costs from its vertical integration; intellectual property
infringement claims and litigation; interruption in supply of key
components, including from transportation disruptions from natural and
man-made events; manufacturing risks; inventory write-downs; foreign
currency fluctuations; competitive factors, including declining average
selling prices; building and expanding field service and support
operations; uncertainties pertaining to customer orders; demand for
products and services; development of markets for the Company's products
and services; and other risks identified in the Company's SEC filings.
Readers are encouraged to refer to the risk factors described in the
Company's Annual Report on Form 10-K (filed with the SEC on February 27,
2012) and its periodic reports filed with the SEC, as applicable. Actual
results, events and performance may differ materially. Readers are
cautioned not to rely on the forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to
update the forward-looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
IPG Photonics Corporation
Tim Mammen, 508-373-1100
Chief
Financial Officer
or
Sharon Merrill
David Calusdian,
617-542-5300
Executive Vice President
Source: IPG Photonics Corporation
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