Optos Plc, listed on the London Stock Exchange and one of the global foremost firms in medical retinal imaging Tuesday announced it had proposed the acquisition of Australia’s Opto Global Holdings Pty Ltd. Under the proposal, Optos plc has proposed the acquisition of the entire issued share capital of Opto Global Holdings Pty Ltd, an ophthalmic device company based in Adelaide, South Australia, for up to US$14.75 million.

Optos Plc noted that it expects the transaction to bring it a revenue generating business with a strong range of products and a global distribution network. Particularly, noted Optos,  the investment will enable it expand the market for the Opto Global’s products in the U.S. and EU markets and will also promote its own products in Opto Global’s international markets in the Far and Middle East, Australasia, Africa and Latin America.  

The announcement follows Optos conditional cash and share offer to the shareholders of Opto Global to acquire the entire issued share capital of the company made on the 12th of November, this year. In the event that the shareholders of Opto Global do not accept the offer, Optos has agreed with Opto Global to acquire the business and substantially all of the assets of Opto Global including the shares of its subsidiary undertakings.

The total consideration payable to shareholders of Opto Global under the offer is up to US$14.75 million, comprising initial consideration payable on completion of the offer of $10.75 million in cash and $1 million to be satisfied by the issue of new ordinary shares of Optos plc and contingent cash consideration of up to $3 million based on the achievement of certain revenue-related milestones over the 12-month period beginning in the third month after completion of the offer.

Roy Davis, CEO of Optos, said the acquisition brings a number of complementary products which Optos Plc can market through its sales channel in its core U.S. and EU markets. In addition, through this deal Optos will expand its geographic reach into new markets, particularly the Far East and gain access to a strong distributor network and pipeline of new product opportunities, said Davis.

Davis further said Optos Plc expects the impact of this transaction to be earnings enhancing in the current financial year. This represents an important step in the firm’s journey to becoming a leading provider of diagnostic and treatment solutions to the ophthalmic community, he added.

23 Nov 2010.