GSI Group To Buy Jadak Technologies For $93.5 Mln In Cash - Quick Facts

(RTTNews) - GSI Group Inc. (GSIG) announced that it has reached an agreement to acquire Jadak Technologies Inc. and Jadak LLC, a North Syracuse, New York-based provider of optical data collection and machine vision technologies to OEM medical device manufacturers, for $93.5 million in cash.

GSI stated that the total purchase price of $93.5 million will be financed using a combination of cash on hand and the company's $215.6 million newly amended credit facility.

In addition to the total purchase price, the company will grant restricted stock units or "RSUs" in an aggregate of 180,000 shares to the four owner managers of the business. These RSUs will be eligible to vest after two years if certain financial targets have been achieved.

The transaction is expected to close in March, 2014. It is subject to certain regulatory reviews and customary closing conditions.

Upon the expected close of this transaction in March 2014, the company expects to end the first quarter of 2014 with approximately $140 million of gross debt, and slightly more than $100 million of net debt.

The transaction is expected to add about $50 million in revenue and $10 million in Adjusted EBITDA to GSI's financial results on a full year, pro forma basis.

GSI Group expects that the transaction will be immediately accretive to its free cash flow and non-GAAP earnings per share. Jadak's actual revenue and Adjusted EBITDA contribution to GSI's reported 2014 results will depend on the ultimate date of the closing of the transaction, among other factors.

In addition, GSI expects to realize greater than $12 million of cash tax benefit from the "step up" in the basis of the acquired company's assets.