US-based Newport Corporation has signed an agreement to merge with Kensington Laboratories, a privately held manufacturer of high-precision robotic and motion control equipment for the semiconductor and fibre optic communication industries.
The all-stock transaction will be accounted for as a pooling of interests and accordingly, Newport will restate its historical financial information to include the results of Kensington for all prior periods.
Kensington, which holds more than 20 patents covering advanced robotics and motion control technology, is expected to have revenues of approximately $38 million for the year 2000. The transaction is expected to be immediately accretive to Newport’s 2000 and 2001 results, adding an estimated $.10 per share to Newport’s projected 2000 earnings and an estimated $.15 per share to 2001 earnings.
The transaction is subject to regulatory approval and other customary closing conditions and is expected to be completed in the first quarter of 2001.
Kensington Laboratories, headquartered in Richmond, California, develops and manufactures advanced high-throughput, sub-micron motion control and robotic systems, which are used for optical fibre alignment and semiconductor wafer handling, particularly in the advanced 300 millimetre processing systems now being deployed.
Kensington will be integrated with Newport’s Industrial and Scientific Technologies Division (ISTD), which develops and manufactures a complementary portfolio of components and subsystems that use sub-micron motion control technology.