British imaging firm, e2v technologies, has bought Spanish CMOS sensor company AnaFocus for €34.2 million. The acquisition will accelerate e2v's CMOS development road-map and deepen e2v's reach in the professional imaging markets, according to a statement from e2v.
AnaFocus, based in Seville, Spain, will become part of the machine vision business within e2v's high performance imaging division, which grew by 26 per cent last year. AnaFocus has custom sensor design capabilities and expertise in vision system-on-a-chip development. E2v expects the acquisition to complete during September 2014.
The CMOS image sensor market is expected to reach $13 billion by 2018 at an annual compound growth rate of 10 per cent, according to a market report from Yole Développement. The acquisition is the latest in the industrial image sensor market following ON Semiconductor’s purchase of Truesense Imaging earlier in the year and the acquisition of Cmosis by a private equity firm late last year.
In the calendar year to 31 December 2014 AnaFocus is expected to generate sales of approximately €11 million. The acquisition is expected to be marginally earnings accretive in the financial year ending 31 March 2015 and earnings accretive in the financial year ending 31 March 2016.
The initial cash purchase price of €29.2 million is made up of €26.5 million cash consideration for the business, and assumed net debt of €2.7 million. The AnaFocus management team is staying with the business and can achieve an earn-out of up to €5 million in cash, dependent on value generating ‘stretch' integration targets including revenue growth. The cash consideration will be funded from e2v's existing resources, including its new £90 million bank facility.
E2v Technologies' Group CEO, Steve Blair, said in a statement: ‘AnaFocus adds technology, people and customers to our machine vision business. It strengthens our position in the market, bringing to e2v a successful management team with deep technology capabilities and close relationships with customers that complement e2v's relationships. The strength of the AnaFocus team, and the e2v worldwide sales and customer support channels they can now access, will help us to accelerate our opportunities in this fast-growing business. We see immediate opportunities to apply the technical capabilities of AnaFocus to provide enhanced offerings to our joint customers.’
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