IPG Photonics Announces Agreement to Acquire Genesis Systems Group
November 05 2018 - 8:00AM
Genesis a leader in the integration of
robotic welding and automation solutions
IPG Photonics Corporation (NASDAQ: IPGP) today announced that it
has signed a definitive agreement to acquire privately held Genesis
Systems Group (Genesis), a leader in the integration of robotic
welding and automation solutions. The transaction has been approved
by the Board of Directors of each company. Subject to satisfaction
of customary closing conditions, including regulatory approval, the
transaction is expected to close in the fourth quarter of 2018.
Based in Davenport, Iowa and with production
facilities in the U.S., Mexico and Japan, Genesis is a qualified
robotic systems integrator for more than 300 blue-chip customers in
the transportation, aerospace and industrial end markets. Genesis
has more than 35 years of robotic system design and integration
experience, having integrated more than 6,500 robots with workcells
in 43 U.S. states and 17 countries. Genesis develops innovative
robotic system solutions for applications that include welding,
non-destructive inspection, machine vision, materials handling,
removal and dispensing.
"The acquisition of Genesis is an important step
in IPG's evolution to becoming a more complete provider of welding
solutions and strategic partner to end customers," said Dr.
Valentin Gapontsev, IPG Photonics' Chief Executive Officer. "IPG
has been a supplier to Genesis for many years and its customers
have embraced our new technologies and products. We plan to
leverage Genesis' unique expertise in robotic systems integration
to accelerate laser processing within the transportation, aerospace
and industrial end markets. In addition, Genesis will provide a
route to market for IPG's advanced laser welding and laser cleaning
solutions."
"By combining Genesis' proven process,
automation expertise and customer footprint with IPG's leading-edge
portfolio of laser technology, the combined companies are uniquely
capable of driving penetration of laser processing and delivering
greater value to customers," said Pat Pollock, Genesis' President
and Chief Executive Officer."
The cash purchase price is $115 million, subject
to customary closing adjustments. Genesis has approximately 380
employees and is expected to achieve approximately $100 million in
revenue for the fiscal year ended December 31, 2018. The
acquisition is expected to be approximately neutral to IPG's
earnings per diluted share, including amortization of acquired
intangibles, for the fiscal year ended December 31, 2019.
IPG and Genesis will be showcasing their
technology solutions at FABTECH 2018, taking place at the Georgia
World Congress Center in Atlanta, Georgia November 6-8, 2018. IPG
will be at booth C12868 and Genesis at booths C13242 and
C13029.
Contact
James HillierVice President of Investor
RelationsIPG Photonics
Corporation508-373-1467jhillier@ipgphotonics.com
About IPG Photonics
CorporationIPG Photonics Corporation is the leader in
high-power fiber lasers and amplifiers used primarily in materials
processing and other diverse applications. The company’s mission is
to make its fiber laser technology the tool of choice in mass
production. IPG accomplishes this mission by delivering superior
performance, reliability and usability at a lower total cost of
ownership compared with other types of lasers and non-laser tools,
allowing end users to increase productivity and decrease costs. A
member of the S&P 500® Index, IPG is headquartered in Oxford,
Massachusetts and has more than 25 facilities worldwide. For more
information, visit www.ipgphotonics.com.
Safe Harbor
StatementInformation and statements provided by IPG and
its employees, including statements in this press release, that
relate to future plans, events or performance are forward-looking
statements. These statements involve risks and uncertainties. Any
statements in this press release that are not statements of
historical fact are forward-looking statements, including, but not
limited to, becoming a more complete provider of welding solutions
and strategic partner to end customers; leveraging Genesis’ unique
expertise in robotic systems integration to accelerate laser
processing within the transportation, aerospace and industrial end
markets; Genesis providing a route to market for IPG's advanced
laser welding and laser cleaning solutions; the combined companies
driving penetration of laser processing and delivering greater
value to customers; Genesis’ expected revenue for 2018; impact of
the acquisition on IPG’s earnings per diluted share, amortization
of intangibles and dilution of IPG’s gross margin for the year
ended December 31, 2019; and the expected timetable for closing the
Genesis transaction. Factors that could cause actual results to
differ materially include risks and uncertainties, certain of which
are beyond IPG’s control, including obtaining regulatory approval
in connection with the Genesis transaction; the ability of IPG,
Genesis and the selling members of Genesis to satisfy the
acquisition agreement conditions and consummate the transaction on
the anticipated timetable, or at all; risks associated with the
acquisition in new businesses and technologies, including
integrations, strength or weakness of the business conditions in
industries and geographic markets that IPG serves, particularly the
effect of downturns in the markets IPG serves; uncertainties and
adverse changes in the general economic conditions of markets;
IPG's ability to penetrate new applications for fiber lasers and
increase market share; the rate of acceptance and penetration of
IPG's products; inability to manage risks associated with
international customers and operations; changes in trade controls
and trade policies; foreign currency fluctuations; high levels of
fixed costs from IPG's vertical integration; the appropriateness of
IPG's manufacturing capacity for the level of demand; competitive
factors, including declining average selling prices; inventory
write-downs; asset impairment charges; intellectual property
infringement claims and litigation; interruption in supply of key
components; manufacturing risks; government regulations and trade
sanctions; and other risks identified in IPG's SEC filings. Readers
are encouraged to refer to the risk factors described in IPG's
Annual Report on Form 10-K (filed with the SEC on February 28,
2018) and its periodic reports filed with the SEC, as applicable.
Actual results, events and performance may differ materially.
Readers are cautioned not to rely on the forward-looking
statements, which speak only as of the date hereof. IPG undertakes
no obligation to update the forward-looking statements that may be
made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
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