Bedford, MA--GSI Group (NASDAQ: GSIG), which supplies photonics and motion control components and subsystems to the medical, industrial, electronics, and scientific markets, has reached an agreement to acquire Jadak Technologies (North Syracuse, NY), which provides optical data collection and machine vision technologies to OEM medical device manufacturers, for $93.5 million in cash. The transaction, which is subject to certain regulatory reviews and customary closing conditions, is expected to close in March 2014.
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The agreement is the latest step in the company's strategy to offer a broader range of highly engineered enabling technologies to medical equipment manufacturers. Adding the Jadak technology platforms, which consist of barcode components and scanners, machine vision cameras, RFID technology, magnetic stripe readers, portable platforms, and associated software, will expand GSI's portfolio to over a dozen product families, which are sold into more than 20 medical applications.
Jadak's products are used in medical equipment to increase safety and reduce medical errors by verifying patient identity, validating the specified therapy or function, and enhancing the accuracy of the medical procedure. The company has doubled its revenue over the last five years, through a combination of market growth, as these technologies have been adopted across a wider range of medical equipment, and through increases in the company's penetration of these applications.
The transaction is expected to add approximately $50 million in revenue and $10 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to GSI's financial results on a full-year, pro forma basis.
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