Oxford Metrics (OMG) , the smart sensing software company, said it has entered into an agreement to acquire Industrial Vision Systems for £8.1m. The acuiqision is to be funded with Oxford Metrics' existing cash resources and new ordinary shares.
Industrial Vision Systems (IVS) is a specialist in developing machine vision software and technology for high precision, automated quality control systems, used across a wide range of industries.
"Today's announcement strengthens our sense, analyse and apply strategy. Through its cutting-edge machine vision solutions, IVS replaces traditional inspection methods with smart sensing. This results in faster, more reliable, and highly accurate results, providing well-known brands with the latest machine vision automation." said Imogen Moorhouse, CEO of Oxford Metrics
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A major announcement from Oxford Metrics as it acquires Industrial Vision Systems for an £8.1m consideration. Markets welcomed the news, pushing OMG shares 4.6% higher on Wednesday.
Based in Oxfordshire, IVS' machine vision systems are used globally in automated production processes for high precision quality control, inspection, guidance, identification, measurement, tracking and counting by well-known brands. This sort of automation improves quality control while substantially lowering cost for companies.
IVS should enable Oxford Metrics to extend into more applications and industries as inspection automation and smart manufacturing become standard. IVS will bring a substantial client roster, including medical device and pharmaceutical manufacturers, allowing Oxford to leverage its experience in the Life Sciences market. In turn, IVS will benefit from Oxford's platform, enabling it to scale faster and more efficiently.
IVS has a profitable track record over the past 5 years, driven by an average annual growth rate in revenues of 6%. In the year ended February 28 2023, the business reported unaudited revenues of £3.4m and an EBIT of £0.8m. Trading over the past 6 months is consistent with delivering a further improvement in performance. The acquisition is expected to be immediately EPS enhancing.
The consideration is to be funded in cash from Oxford Metrics' existing resources and the issue of 1,006,859 new OMG ordinary shares at 86.63p.
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