Advanced Energy Announces Acquisition of LumaSense
September 04 2018 - 4:04PM
Advanced Energy Industries, Inc. (Nasdaq: AEIS), a global leader in
innovative power and control technologies, today announced that the
acquisition of LumaSense Technologies Holdings, Inc., based in
Santa Clara, California, closed September 1st. The acquisition adds
a line of photonic-based measurement and monitoring solutions that
are synergistic with the company’s leading precision power control
technologies in both semiconductor and industrial markets.
"The acquisition of LumaSense will enhance our customers’
ability to better control critical parameters of thermal and
material processes, leading to significant improvements in process
performance, efficiency and waste reduction,” said Yuval Wasserman,
President and CEO of Advanced Energy. “This addition will broaden
our exposure to industrial applications for material processing and
power management.”
The acquisition of LumaSense:
- Expands Advanced Energy’s (AE) current electrostatic chuck
solutions, including high voltage power supply and electrostatic
metrology, with LumaSense’s Fluoroptic® temperature measurement
technology
- Complements AE’s leading pyrometry solutions (e.g. Sekidenko™)
with additional fiber optic thermometry for an extended range of
semiconductor applications in etch and deposition
- Provides AE with a robust set of solutions for industrial
pyrometry and gas sensing technologies
- Adds new integrated industrial temperature control and
metrology applications in both thin films coating and thermal
processing
“The close of the acquisition marks an exciting and
transformative time for LumaSense as we officially join the
Advanced Energy family,” said Steve Abely, former CEO of LumaSense.
“We look forward to providing customers with an even more robust
product portfolio that further establishes Advanced Energy’s
position as the global leader in innovative power control
technology.”
Under the terms of the merger agreement, the aggregate
consideration was approximately $85 million in cash without giving
effect to amounts deposited in escrow, the working capital
adjustment, related transaction fees & expenses and the
repayment of outstanding indebtedness of LumaSense. Revenues for
LumaSense in 2017 were approximately $60 million. The acquisition
is expected to be immediately accretive to earnings on a non-GAAP
basis and generate over $10 million of annualized revenue and cost
synergies by 2020. In addition, for AE’s photonic-based product
portfolio, combining LumaSense and the Sekidenko product line, the
company targets to deliver greater than $100 million in annualized
revenue and to reach non-GAAP operating margins in the low to mid
20’s within the next three years.
About Advanced Energy
Advanced Energy (Nasdaq: AEIS) is a global leader in the design
and manufacturing of highly engineered, precision power conversion,
measurement and control solutions for mission-critical applications
and processes. AE’s power solutions enable customer innovation in
complex semiconductor and industrial manufacturing applications.
With engineering know-how and responsive service and support around
the globe, the company builds collaborative partnerships to meet
technology advances, propel growth for its customers and innovate
the future of power. Advanced Energy has devoted more than three
decades to perfecting power for its global customers and is
headquartered in Fort Collins, Colorado, USA. For more information,
visit www.advanced-energy.com
Advanced Energy | Precision. Power. Performance.
LumaSense Technologies, Inc.
LumaSense Technologies, Inc., is one of the world’s most trusted
providers of innovative temperature and gas sensing devices. By
applying LumaSense’s proven systems and software, customers in
Global Energy, Industrial Materials, and Advanced Technologies are
able to reduce waste and inefficiency in their processes. For more
information, visit www.lumasenseinc.com
For more information, contact:
Paul OldhamAdvanced
Energy Industries, Inc.(970) 407-6615paul.oldham@aei.com |
Brian SmithAdvanced
Energy Industries, Inc.(970) 407-6555ir@aei.com |
Non-GAAP Measures
Advanced Energy’s non-GAAP measures exclude the impact of
non-cash related charges such as stock-based compensation and
amortization of intangible assets, as well as non-recurring items
such as acquisition-related costs. Such non-GAAP measures are not
in accordance with, or an alternative for, similar measures
calculated under generally accepted accounting principles and may
be different from non-GAAP measures used by other companies. In
addition, non-GAAP measures are not based on any comprehensive set
of accounting rules or principles. Advanced Energy believes that
non-GAAP measures provide useful information to management and
investors to evaluate business performance without the impacts of
certain non-cash charges and other charges which are not part of
the company’s usual operations. Advanced Energy uses non-GAAP
measures to assess performance against business objectives, make
business decisions, develop budgets, forecast future periods,
assess trends and evaluate financial impacts of various scenarios.
In addition, management's incentive plans include non-GAAP measures
as criteria for achievements. Advanced Energy believes that
non-GAAP measures, in combination with its financial results
calculated in accordance with GAAP, provide investors with
additional perspective. While some of the excluded items may be
incurred and reflected in the Advanced Energy’s GAAP financial
results in the foreseeable future, the company believes that the
items excluded from certain non-GAAP measures do not accurately
reflect the underlying performance of its continuing operations for
the period in which they are incurred. The use of non-GAAP measures
has limitations in that such measures do not reflect all of the
amounts associated with the company’s results of operations as
determined in accordance with GAAP, and these measures should only
be used to evaluate the company’s results of operations in
conjunction with the corresponding GAAP measures.
Forward-looking Language
Certain statements in this press release, including, without
limitation, statements regarding the transaction between Advanced
Energy and LumaSense, aspirational targets and expected financial
performance of LumaSense as combined with Advanced Energy’s
Sekidenko product line, benefits and synergies of the combination,
future opportunities for the combined company and the statements
about Advanced Energy’s future expectations, beliefs, goals, plans,
or prospects are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are
subject to known and unknown risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Any statements that are not statements
of historical fact (including statements containing the words
"will," "projects," "intends," "believes," "plans," "anticipates,"
"expects," "estimates," “aspire,” "forecasts," "continues" and
similar expressions) should also be considered to be
forward-looking statements. There are a number of important factors
that could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including: (1)
execution of the combined business plan to reach our revenue,
non-GAAP operating income margin and cost synergy, aspirational
goals over the three-year period; (2) the ability of Advanced
Energy to successfully integrate LumaSense's operations and
employees; (3) unexpected costs, charges or expenses resulting from
the combination; (4) Advanced Energy’s ability to successfully grow
LumaSense's business; (5) potential adverse reactions or changes to
business relationships resulting from the completion of the
transaction; (6) the retention of key employees; and (7)
legislative, regulatory, tariff and economic developments,
including changing business conditions in the semiconductor
industry and industrial markets overall and the economy in general
as well. These and other risks are described in Advanced Energy's
Form 10-K, Forms 10-Q and other reports and statements filed with
the Securities and Exchange Commission. These reports and
statements are available on the SEC's website at www.sec.gov.
Copies may also be obtained from Advanced Energy's website at
www.advanced-energy.com or by contacting Advanced Energy's investor
relations at (970) 407-6555. Forward-looking statements are made
and based on information available to the company on the date of
this press release. The company assumes no obligation to update the
information in this press release.
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