SOUTH WINDSOR, Conn. (AP) -- Manufacturing systems maker Gerber Scientific Inc. on Friday agreed to buy industrial laser maker Virtek Vision International Inc. for $33.1 million.
Virtek sells lasers used in marking, engraving, inspections and template making, and Gerber said the deal will give it approximately $50 million in additional annual revenue. Its bid was worth 35.1 million Canadian dollars, or 1.05 Canadian dollars per share.
That is an 18 percent premium to its closing price on Aug. 29, which was the last trading day before Virtek received Gerber's offer. The buyout will be funded through Gerber's $125 million line of credit.
Gerber said Virtek reported revenue of 52.1 million Canadian dollars, or US$49.1 million, in the 12 months ended April 30. The company is based in Waterloo, Ontario, and Ludenscheid, Germany.
The deal requires approval from shareholders owning at least two-thirds of Virtek's stock, and the company recommended that shareholders approve the bid. If Virtek receives a buyout offer from another company, Gerber will have the right to match it. Virtek will pay Gerber a breakup fee of 1.15 million Canadian dollars, or $1.1 million, if it accepts another offer.
Virtek would also pay back Gerber for expenses, up to 250,000 Canadian dollars, or about US$235,500.