A Fife medical devices firm is being snapped up by Japanese camera maker and imaging giant Nikon in a £260 million deal.
The acquisition of Optos, which has its headquarters in Dunfermline, has beenrecommended to shareholders by the firm’s board and will be one of the largestcorporate takeovers in the region for years when it completes as expected in late spring.
Details of Nikon’s all-cash offer of £259.3mfor the business the equivalent of 340 pence per share led to a sharp spike in the firm’s stock in early Friday trading.
Optos, which employs around 390 staff across its global operations including more than 150 workers in Fife, produces a range of optical imaging devices which are used by healthcare professionals to scan for signs of medical problems within the eye.
The firm was founded by Douglas Anderson in 1992 after his then five-year-old son Leif went blind in one eye aftersuffering a retinal detachment.
Mr Anderson’s mission was to create and commercialise a patient-friendly retinal image product that encompassed a digital widefield image of the retina.
The company’s growth led to a flotation on the London Stock Exchange in 2006 and it has since introduced several imaging devices to the market including its current flagship Daytona unit.
Nikon, which is committed tomaintaining Optos’s operational base in Fife, said the acquisition provided it with an attractive platform to chase its ambitions in the medical marketplace.
“Nikon intends to expand signficantly into the high growth medical sector toleverage its optical technologies andknow-how into the medical industry,” the firm said.
“The proposed acquisition of Optos is therefore an important step for Nikon in a number of key respects.”
Company president Nikon Kazuo Ushida said the combination wouldcreate a “world class” retina imaging operation.
“I am pleased to announce this strategically importanttransaction for Optos and Nikon,” he said.“I am confident that an Optos/Nikon combination would create a world-class retina player and would significantlybenefit our respective stakeholders.
“Together, we will pursue variouscollaboration opportunities and further expand the medical business in the future.”
Contact between the two companies was first established last summer, initiallyon the basis of examining possiblecollaboration projects.
However, Nikon’s interest in Optos grew over the latter part of 2014 and eventually led to formal takeover talks.
Optos chief executive Roy Davis, who joined the company six years ago when the share price was sitting at just a tenth of the offer price, hailed the deal and said Optos was about to embark on its most exciting journey to date.
“We have got a major player in Nikon here which wants to build a significant global medical devices business,” Mr Davis said.“It is acquiring us as it wants to build that business on our platform.”
Mr Davis also took the opportunity to pay tribute to the staff who built Optos into a major force.
“For the company it is a great day.It is testament to the hard work thateverybody put in and validation of their achievements,” he said.
“I believe Nikon is buying the business in order to grow it and that means good news for everybody at Optos.”
Optos chairman Peter Fellner expects Optos to flourish within the Nikon family.
He said: “Under the leadership of Roy Davis and the management team, Optos has successfully established itself as a global leader in retinal imaging supported by the introduction of innovative newproducts such as the Daytona.
“During this period, our share price and financial results have shown material improvement and Optos is now well placed for further growth.”
Shares in Optos closed up 81.40 points at 341.90.