(News Bulletin 247) – The French laser champion announces the project to acquire the Italian and American subsidiaries of the transalpine company Prima Industrie. This acquisition will allow Lumibird to strengthen its expertise in semiconductors and will contribute to developing the medical branch of the group based in Lannion.

Investors welcome the acquisition announced by Lumibird, the European leader in laser technologies, whose title clearly outperforms the Paris market on Tuesday by winning 9.4% at 15.40 euros, around 4:50 p.m.

The Breton group will indeed strengthen its expertise in high-power lasers and semiconductors, and open up to new markets in the fields of urology and gynecology. And that’s the subject of today’s announcement. Lumibird announced Tuesday morning before the opening of the markets of an agreement with the company Prima Industrie relating to the acquisition of its subsidiary Convergent Photonics based in Turin as well as Convergent assets held by Prima Industrie North America in Boston.

Convergent Photonics has over 50 years of historical know-how in the design and manufacture of semiconductor lasers and laser diode packaging, as well as the design and manufacture of high-power fiber lasers for the medical sector (urology, surgery…).

Like Convergent Photonics, Lumibird boasts 50 years of experience in its specialty, which is the mastery of solid-state laser, diode laser and fiber laser technologies. The group resulting from the merger in October 2017 of Keopsys and Quantel designs, manufactures and distributes high-performance laser solutions for scientific uses (research laboratories, universities), industrial uses (production, defense/space, Lidar sensors – which is experiencing significant growth thanks to development of autonomous vehicles) and medical (ophthalmology, ultrasound diagnosis).

Well-identified synergies

Lumibird explains that this acquisition will help it further strengthen its sovereignty in the field of lasers and optronics as well as complement the strategic investments already made in fiber optics and derivative components, with the contribution of the semi- -drivers. This purchase will also allow Lumibird to eventually become independent in the supply of critical components.

The integration of these activities of the two subsidiaries of Prima Industrie will also support the development of the medical branch on markets other than that of ophthalmology on which the group is already in pole position, having the specialties of urology and gynecology. Lumibird has already identified synergies with the photonics branch with the integration of these new specialties into its fold.

The price of this purchase was not disclosed, it being specified all the same that Convergent Photonics achieved in 2022 a turnover of 15 million euros for a negative gross operating surplus (Ebitda) of up to 1 .5 million euros.

The French group plans to finance its acquisition with its available cash, amounting to 61.7 million euros at the end of 2022. Lumibird is considering another option, that of resorting to credit by drawing on the bank lines available to the group. , in compliance with the covenants (conditions included in a loan agreement).

However, the acquisition is subject to approval by the regulatory and supervisory authorities in Italy and the United States. Once the green light has been obtained from these authorities, Lumibird and Prima Industrie expect to complete this transaction during the second half of 2023.