OSI Systems to buy American Science and Engineering
OSI Systems will enhance its security platform with the acquisition of American Science and Engineering, a provider of detection solutions for advanced cargo, parcel, and personnel inspection for US$187 million.
Deepak Chopra, OSI Systems’ chairman and CEO, said the acquisition of AS&E will be the most significant security acquisition in OSI’s history. “We believe represents an excellent strategic fit consistent with our expansion strategy. AS&E’s backscatter X-ray technology has long been a leader within the security industry, and its cutting-edge products, extensive service network, and premier customer base are highly complementary to our current operations.”
The offer is for US$37.00 per share in cash, representing a total purchase price of approximately US$187 million, net of US$82 million of AS&E cash and cash equivalents as of March 31, 2016.
The transaction has been unanimously approved by the OSI Systems and AS&E bBoards of directors. The closing of the transaction is subject to the approval of AS&E’s shareholders, antitrust approval, and other customary closing conditions.
Chuck Dougherty, president and CEO of AS&E, commented: “The combination of AS&E and OSI Systems will create a leader in cargo and aviation security screening platforms, offering customers and business partners a complete range of scanning solutions to meet their evolving security and operational requirements. Additionally, the collective scale, technology capabilities, and mutual channel strengths of the combined businesses will enable the company to provide customers and business partners with an enhanced set of competitive products and services.”
According to a statement from OSI Systems, the company expects to maintain AS&E’s current operations in Billerica, MA, as an essential part of an expanded security scanning business unit.”
OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense and aerospace industries.