Rocky Hill, Connecticut, April 12, 2004--Axsys Technologies, a provider of opto-mechanical components and assemblies for aerospace, defense, and commercial markets, acquired all of the stock of Telic Optics (North Billerica, MA). Axsys paid an initial purchase price of $14 million, with an additional $4 million earn-out over the next 36 months if certain revenue goals are achieved.
Telic employs 32 people and sells its products to manufacturers of thermal imaging cameras, defense prime contractors, and research laboratories who design systems used in long-range reconnaissance, surveillance, and targeting applications for the defense and homeland security markets. Axsys is a supplier of metal optics and opto-mechanical assemblies used in reconnaissance, surveillance and targeting applications, primarily for air- and space-based applications.
According to Axsys, the acquisition of Telic provides them with several strategic benefits:
-- Telic's broad infrared optics capabilities increase Axsys' product offerings and complement Axsys' strong position in metal mirrors. Axsys estimates that the infrared lens market is three times as large as the metal optics market.
-- Telic's products are typically used in ground- and sea-based programs. This complements Axsys' historical focus on air- and space-based programs and expands Axsys' overall market and program penetration.
-- The combination of Axsys' and Telic's opto-mechanical integration capabilities is expected to enable Axsys to increase its competitive advantage and technical offering to prime contractors who are seeking to outsource optics-based subassemblies.