NEWPORT® CORPORATION COMPLETES ACQUISITION OF FIBER LASER COMPANY V-GEN LTD.
Accretive Acquisition Expands Fiber Laser Capabilities and Leverages Newport’s Global Sales Channel
Acquisition expected to generate sales of $15 million to $20 million in the next twelve months
Irvine, CA, September 29, 2014 – Newport Corporation (NASDAQ: NEWP) today reported that it has completed its previously announced acquisition of V-Gen Ltd., a leading developer and manufacturer of fiber lasers headquartered in Tel Aviv, Israel.
“We are very pleased to welcome V-Gen to the Newport team,” stated David Allen, Senior Vice President and General Manager of Newport’s Spectra-Physics Lasers Group. “V-Gen’s innovative fiber laser technology will further expand Newport’s reach into fast-growing application areas, and will complement our current product offerings. By leveraging Spectra-Physics’ global sales and service presence and complementary capabilities, we expect to accelerate V-Gen’s sales growth, and we are excited about their future contributions to Newport.”
V-Gen is a recognized innovator in the field of fiber lasers, and has a significant intellectual property portfolio. The company’s headquarters in Tel Aviv, Israel house its manufacturing operations, research and development laboratories, service facilities and administrative offices, and it has approximately 50 employees worldwide. Newport expects V-Gen to generate sales in the range of $15 million to $20 million in the next twelve months, and expects the transaction to be accretive to its earnings immediately.
About Newport Corporation
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, life and health sciences, industrial manufacturing and defense and security markets. Newport's innovative solutions leverage its expertise in advanced technologies, including lasers, photonics and precision motion equipment, and optical components and sub-systems, to enhance the capabilities and productivity of its customers' manufacturing, engineering and research applications. Newport is part of the Standard & Poor's SmallCap 600 Index and the Russell 2000 Index.
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Safe Harbor Statement
This news release contains forward-looking statements, including without limitation statements regarding the expected closing date of the acquisition, V-Gen's expected sales in the first twelve months after the transaction closes, its expectation that the acquisition will be accretive to its earnings immediately after closing, the anticipated contributions of V-Gen to Newport, and the expectation that the acquisition will enable V-Gen to expand its business more than if it were a stand-alone company. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Assumptions relating to the foregoing involve judgments and risks with respect to, among other things, the strength of business conditions in the industries V-Gen serves; V-Gen's ability to successfully penetrate and increase sales to its targeted end markets; potential order cancellations and push-outs; future economic, competitive and market conditions, including those in Europe and Asia and those related to its strategic markets; whether its products will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of V-Gen or Newport. Certain of these judgments and risks are discussed in more detail in Newport's periodic reports filed with the Securities and Exchange Commission. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Charles F. Cargile, 949/863-3144
Newport Corporation, Irvine, CA
Rob Fink, 212/896-1206
KCSA Strategic Communications