Analogic Corp. announced recently that it has entered into an agreement to acquire privately held Copley Controls Corp., Canton, MA, a supplier of gradient amplifiers for Magnetic Resonance Imaging (MRI) and precision motion control systems. The purchase price is approximately $68.75 M cash and up to an additional $1.8 M to reimburse Copley shareholders for the tax consequences of the transaction. Copley will become a wholly owned subsidiary of Analogic.
The transaction is expected to close in early April 2008, and will be subject to customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act. The purchase price and additional reimbursement to be paid to Copley shareholders will be funded out of Analogic’s available cash and the transaction is not subject to financing conditions.
Analogic is an Original Equipment Manufacturer (OEM) supplier of Radio Frequency (RF) amplifiers for MRI systems. Copley, founded in 1984, is a supplier to OEMs of gradient amplifiers for MRI systems. In addition to its Canton headquarters, Copley has offices and local technical support in the United States, Europe, and Asia, comprising approximately 250 employees worldwide. Copley’s revenues for the calendar year 2006 were $73.6 M; preliminary calendar year 2007 revenues are estimated to be $83 M.
Analogic estimates that revenues related to the acquisition in calendar year 2008 will be in excess of $85 M and, excluding one-time purchase accounting adjustments, accretive to earnings in Analogic’s fiscal year 2008 and fiscal years thereafter.
Analogic president and CEO Jim Green said, “This is a very important step forward for Analogic as we augment organic growth with ‘good fit’ acquisitions that complement our core businesses. Our acquisition of Copley Controls combines two companies with strong engineering resources focused on highvalue precision systems. The addition of Copley, with its leading-edge technology in high-field gradient amplifiers and its solid customer base, will enable Analogic to expand our product offerings to our OEM customers, open up new opportunities in Asia, and enhance our position as a leading provider of medical subsystems for MRI scanners.”
“Joining Analogic is a natural fit for us,” noted Matthew Lorber, president of Copley Controls. “The blending of our companies and technologies will benefit both our customers and Analogic’s. Copley’s products complement Analogic’s existing products and customer base. Our top-of-the-line systems and talented engineering team, combined with Analogic’s excellent reputation in the industry, its advanced technology and well established market presence, will create new business opportunities.”