14th Feb 2014 09:11
LONDON (Alliance News) - Scientific Digital Imaging PLC Friday said it has bought Opus Instruments Ltd for up to GBP1.3 million in cash and shares, saying it will look for new uses for the Opus high-resolution camera currently used in restoring fine art works.
In a statement, the company said it will pay Opus's founder shareholders an initial GBP1.025 milloion and then deferred payments of up to GBP300,000 depending on revenues from Osiries camera sales in the three years after the deal completes.
The initial payment will be made up of GBP275,000 cash on completion, a further GBP300,000 in cash depending on the net assets of Opus at completion, and the issue of 2.6 million new Scientific Digital shares.
"Opus is the manufacturer of the Osiris camera which the Board of SDI believes is the first camera for infrared reflectography to provide high resolution high speed images in a small portable camera," Scientific Digital said in a statement. "The Osiris cameras have been used predominately in art galleries and museums around the world to examine numerous works of art including work by artists such as Leonardo da Vinci, Rembrandt and Watteau."
Scientific Digital said it now intends to explore new applications for the technology.
Opus achieved sales of GBP293,000 and post-tax profits of GBP94,000 in the year to April 30, 2013. Scientific Digital expects the buy to boost its own earnings from the year starting May 1, 2014.
"This is an exciting acquisition for SDI and we plan to explore further applications for the infrared imaging system beyond art restoration. We believe that the Osiris camera unit will complement SDI's existing portfolio of high specification and performance Atik and Artemis cameras and we expect it to be earnings enhancing in the next financial year," Chairman Ken Ford said.
Scientific Digital will also pay GBP25,000 in cash and 141,242 new shares to Silfensoft Ltd for software needed to operate the Osiris cameras.
Scientific Digital shares last traded at 18.5 pence.
By Steve McGrath; [email protected]; @SteveMcGrath1
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