IPG Photonics Corporation (NASDAQ: IPGP) today announced the acquisition of privately held New Hampshire-based J.P. Sercel Associates Inc. (JPSA), a leading global supplier of UV excimer and diode pumped solid state (DPSS) industrial laser micromachining systems for precision processing in high-volume manufacturing. JPSA is anticipated to add approximately $4 million to IPG's revenues for the remainder of 2012. At current revenue levels, the acquisition is expected to be dilutive by $0.01 to $0.02 per share in 2012, and is expected to be accretive in 2013. Financial terms were not disclosed. The acquired business will operate under the name IPG Microsystems LLC.
The acquisition enables IPG to expand its integrated laser systems product offerings for fine-processing, precision cutting, drilling and micromachining of non-metals, including glass, semiconductors and ceramics. JPSA's systems perform advanced laser micromachining, micro cutting, scribing and laser lift-off for semiconductors, microfluidics, LEDs, thin film solar panels, micro-electro-mechanical systems (MEMs), biomedical technology and industrial automation applications.
"This acquisition broadens our customized laser-based systems offerings and provides significant sales synergies," said Dr. Valentin Gapontsev, IPG Photonics Chief Executive Officer. "The combination of JPSA's specialized laser systems and the UV and short pulse fiber lasers that IPG is developing now should allow us to deepen our penetration of the $800 million fine-processing market. At the same time, we plan to capitalize on opportunities to expand the global reach of JPSA's products through IPG's extensive sales and service network. In addition, we expect that the development expertise of the very experienced JPSA team would benefit our capabilities in other micromachining applications."
"Strong demand exists for better quality short-wavelength and short pulse width laser sources in applications addressed by JPSA's products," commented Jeff Sercel, CEO and Chief Technology Officer of JPSA. "While we will continue to sell our UV and excimer laser systems, as well as systems which use DPSS lasers, we strongly believe there are significant growth opportunities using advanced fiber lasers to displace traditional laser sources in high growth applications. Together, we will be able to sell into new applications, expand geographically and accelerate into markets where there are needs for advanced fiber laser technology. We look forward to being productive members of the IPG Photonics team."