Keywords
Citation
(1999), "General Scanning Inc. and Lumonics Inc. announce agreement to merge", Microelectronics International, Vol. 16 No. 2. https://doi.org/10.1108/mi.1999.21816bab.015
Publisher
:Emerald Group Publishing Limited
Copyright © 1999, MCB UP Limited
General Scanning Inc. and Lumonics Inc. announce agreement to merge
General Scanning Inc. and Lumonics Inc. announce agreement to merge
Keywords General Scanning, Lumonics, Merger
In a proposed merger of equals, the boards of directors of General Scanning Inc. of Watertown, Massachusetts, and LumonicsÆ Inc. of Kanata, Ontario, have announced the signing of a definitive agreement to combine the two companies, subject to shareholder and regulatory approvals.
The merged company, GSI Lumonics Inc., will be the world's leading producer of laser-based advanced manufacturing systems.
The combined enterprise will be listed on both the TSE and NASDAQ and will report its financial results in US dollars. On a pro-forma basis, based on 12-month trailing revenues, the new company will have annual sales of approximately US$330 million and serve customers in more than 40 countries. By business segment, the combined company would generate approximately 18 percent of annual sales from semiconductor, 19 percent from electronics, 9 percent from automotive, 6 percent from aerospace, 15 percent from medical device markets, 4 percent from packaging and 29 percent from other sources, including parts and service.
Under terms of the proposed merger, each General Scanning Inc. shareholder will receive 1.347 shares of LumonicsÆ Inc. for each share held. Lumonics shareholders will continue to hold their existing number of shares.
As a result, current shareholders of each company will own approximately 50 percent of the combined company following the merger. The merger is expected to close during the first quarter of 1999 subject to regulatory and shareholder approval.
In a joint announcement, the chief executive officers of both companies said the proposed merger would create the most resourceful, dynamic and substantial laser products company in the world.
The board of directors of the combined companies will be made up of equal representation from current board members of both Lumonics Inc. and General Scanning Inc. Robert J. Atkinson, chairman, Lumonics, will be the chairman of the board of GSI Lumonics Inc.