VI Group acquires Camtek

A Camtek product story
Edited by the Engineeringtalk editorial team Dec 4, 2006

VI Group has acquired the entire issued share capital of production CAM software specialists, Camtek, for a total cash consideration of GBP 2.77 million, payable over two years

The consideration is payable as GBP 2.2 million immediately with the balance payable in two equal instalments on the first and second anniversary of the close.

The acquisition has been partially funded by a GBP 1.9 million loan provided by Fortis Bank SA/NV.

The remainder of the consideration will be funded from the cash resources of the company.

For the 12 months ended December 2005, Camtek made gross profit of approximately GBP 0.9 million and profits before tax of approximately GBP 0.3 million on turnover of GBP 1.9 million.

Camtek is VI Group's largest acquisition since the company listed its shares on AIM in 1998.

It will be immediately earnings enhancing and will increase group turnover by around 20 per cent, making it one of the largest independent CAD/CAM specialists in the UK.

By purchasing Camtek, VI Group acquires a significant team of CAM specialists, complementing VI Group's existing software team, resulting in a greater concentration of expertise and clients requiring Computer Aided Design solutions.

The net assets acquired, amounting to GBP 755,211, include Camtek's offices in Malvern, Worcestershire, UK, valued at GBP 368,500.

Founded in 1983, Camtek developed the world renowned Production Engineering Productivity System software (PEPS), which is used to drive a number of production technologies including laser cutting, wire Electrical Discharge Machining (EDM) and Computer Numerically Controlled (CNC) turning and milling machines.

Camtek's products are used worldwide in over 60 countries and are sold through a network of international machine tool manufacturers and distribution partners.

Its principal geographical sales markets include Japan, Germany, Italy, UK and North America.

The PEPS software is used by thousands of sub-contractor and production organisations to quickly generate accurate and complex components.

Don Babbs, Chief Executive of VI Group, commented: "This is a major acquisition with immediate benefits".

"As well as enhancing Group earnings from day one, it gives the Group entry into a much wider marketplace".

"It also provides an opportunity to work with the PEPS developers to introduce the same type of outstanding productivity that we have already achieved in the mould and die sector".

"In addition, we would also expect to use our overseas sales and distribution network to increase sales of the PEPS product range".

Brian Warner, Managing Director of Camtek, added: "The synergy of our joint products and development activities, coupled with the close proximity of VI Group headquarters and the size of its overseas network, will allow us to increase the visibility and penetration of our PEPS CAM solutions around the world".

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