ISRA VISION AG, a leading provider of surface inspection solutions and 3D machine vision and the Swedish global industrial group Atlas Copco have signed a Business Combination Agreement (BCA) to enter into a strategic partnership. For ISRA, the strategic partnership not only represents a way to further accelerate the growth and innovation path of the company but also the favorite succession plan for its founder and CEO Enis Ersü.
Strengthening its focus on industrial automation, Atlas Copco aims to create a global leader in Machine Vision with ISRA as nucleus. In the context of this strategic partnership, Atlas Copco will launch a voluntary public tender offer of EUR 50.00 per ISRA share in cash. The offer price represents a premium of approx. 29 percent on the volume-weighted three-month average share price prior to the announcement and a premium of approx. 43 percent on
the closing share price of February 7, 2020.
The Atlas Copco takeover bid in cash for ISRA Vision values the company at 1.09 billion euros ($1.19 billion), including debt, expanding the Swedish company’s business in automated manufacturing and quality control.
ISRA VISION specializes in machine vision solutions with leading technologies for surface inspection and 3D vision for robot guidance, quality inspection and metrology operating through two business lines, Industrial Automation and Surface Vision. The company has a global presence with operations in 25 locations and more than 800 employees and is headquartered in Darmstadt, Germany. In the fiscal year 2018/19 the company had revenues of approximately MEUR 154 ($168 million) and a 22 percent EBIT margin. ISRA VISION has delivered a compound annual growth rate (CAGR) of 9 percent in terms of revenues over the past ten years.
Enis Ersü and further management and Supervisory Board members of ISRA, representing approx. 29 percent of shares in ISRA, have signed irrevocable undertakings to tender their shares. Overall, Atlas Copco has secured approx. 35 percent of all outstanding ISRA shares via irrevocable undertakings and a share purchase agreement with an institutional investor. Upon completion of the public tender offer a delisting offer is planned to follow.
ISRA with its business areas Surface inspection and 3D machine vision is part of the long-term strategy of the new partner, and the objective is to grow the business further. With the Business Combination Agreement, ISRA and Atlas Copco also agreed on important cornerstones of the partnership that secure the interests of customers and employees of ISRA.
Atlas Copco is headquartered in Stockholm with customers in more than 180 countries and about 39,000 employees. In 2019, Atlas Copco achieved revenues of approximately. 10 bn. EUR. The Group has been present in Germany for more than 65 years and has successfully integrated many companies in Germany and around the globe.
Machine vision is a key technology that enables customers across industries to digitalize production and is part of Atlas Copco’s long-term strategy. Therefore Atlas Copco wants to further strengthen its focus on industrial automation and create a Machine Vision division. ISRA will become the nucleus of this new division in Atlas Copco’s business area Industrial Technique, which provides industrial automation systems and solutions, quality assurance products and industrial software through a global network.
“Surface inspection and 3D machine vision are part of Atlas Copco’s long-term strategy,” said Henrik Elmin, Business Area President Industrial Technique. “ISRA VISION has a strong brand and market position, a highly regarded technological expertise as well as a solid financial track record. Through this partnership we will increase the support for our customers on their transition towards digital manufacturing in several segments. The ability to offer both joining technologies and machine vision solutions for the same application strengthens our position as a strategic partner for our customers in the future.”
“Atlas Copco is the committed and long-term owner I have been looking for to give ISRA VISION a platform for further growth,” said Enis Ersü, CEO of ISRA VISION. “The partnership is good news not only for our shareholders, but for our customers, employees and our broader community, too: Customers will benefit from business continuity and even better service through Atlas Copco’s global footprint. Employees will be pleased to see their jobs and headquarter location secured.”
For more information: www.isravision.com