Cognex Acquires DVT for $115 Million
Monday May 9, 5:31 pm ET
Cognex Corp. Acquires Privately Held Rival DVT Corp. in $115 Million Deal
NATICK, Mass. (AP) -- Cognex Corp., which makes viewing devices for technology, medical, automotive and consumer goods companies, on Monday said it acquired privately held DVT Corp. for about $115 million.
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The company acquired DVT for $104 million in cash, and will make a final payment of up to $11 million in cash at the end of one-year escrow period. The acquisition was completed on May 9.
Cognex said it plans to maintain operations at DVT's Georgia facility, and to continue selling and supporting DVT's vision products through DVT's existing third-party distribution channel. The company said the deal is the largest acquisition in its history.
As a result of the acquisition, Cognex expects revenue to increase by about $15 million to $20 million during fiscal 2005. The acquisition is expected to be neutral to earnings in 2005, and to boost is earnings next year including acquisition charges. Cognex said it expects the acquisition to have a minimal impact on its second-quarter results due to the late timing of the transaction.
Analysts surveyed by Thomson Financial expect the company to earn 68 cents per share on revenue of $193.1 million for 2005, and 95 cents per share on $227.9 million in revenue for 2006.
DVT sells low-cost vision sensors primarily to the factory-floor segment of the machine vision business, the company said.
Shares of Cognex fell 69 cents, or 2.9 percent, to $24.13 in electronic trading after closing up 23 cents at $24.13 on the Nasdaq.
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