GSI Lumonics buys Dynamic Research's Encoder division for $3.3 million
Billerica, MA—GSI Lumonics Inc. announced May 2 that it has purchased the principal assets of the Encoder division of Dynamics Research Corp. (DRC, Wilmington, MA) for about $3.3 million, subject to adjustment and assumption of some liabilities.
Billerica, MA— GSI Lumonics Inc. announced May 2 that it has purchased the principal assets of the Encoder division of Dynamics Research Corp. (DRC, Wilmington, MA) for about $3.3 million, subject to adjustment and assumption of some liabilities.
GSI Lumonics reports that the product lines it acquired with the Encoder division have an annualized run rate of sales of $6-7 million. The division will be integrated into GSI Lumonics' new Component Products Group in Billerica, which currently scheduled for completion by the end of August 2003. GSI Lumonics supplies precision motion control components, lasers and laser-based advanced manufacturing systems to the global medical, semiconductor, electronics, and industrial markets.
'This acquisition is consistent with GSI Lumonics' stated strategy to acquire new technologies and expand into new products complementary with its existing markets," says Charles Winston, GSI Lumonics' president and CEO. "The addition of the Encoder division's assets represents the addition of technology and products that expand our offering of precision motion control components. It is currently expected that this acquisition will be accretive to earnings in the fourth quarter of 2003."
GSI Lumonics adds that optical encoders are high-resolution, electromechanical feedback devices, which are a critical part of precision motion control systems. Digital output from the encoder provides real-time position feedback data to a motion control system's electronics. In recent years, advances in microprocessor technology and shrinking microelectronic geometries have stimulated demand for sensors, including encoders. These products are found in aerospace, automotive, medical instrumentation, semiconductor processing and factory automation applications, as well as motion control sub-systems.
Control Engineering Daily News Desk
Jim Montague, news editor