Advanced Photonix Inc of Ann Arbor, MI, USA (which designs and makes APD, PIN, and FILTRODE photodetectors, HSOR high-speed optical receivers, and T-Ray terahertz instrumentation) has acquired certain assets of Silonex Inc of Montreal, Canada, a subsidiary of ARCAS Automotive Group (Luxco 1) S.a.r.l., for $900,000.
Silonex designs and manufactures optoelectronic devices and sensor solutions, for vertical markets including industrial controls, banking, vending, medical and telecoms.
The Silonex acquisition is expected to bring Advanced Photonix more than $4m in annual revenue and generate positive EBITDA (earnings before interest, taxes, depreciation, amortization and stock compensation) during the first full fiscal year (to end-March 2014). Engineering and product development for the Silonex products will continue in Montreal, while production will be transitioned either to an off-shore facility or to Advanced Photonix's operations in Camarillo, CA.
"Silonex brings a rich history of product development, new markets, new optoelectronic sensing capabilities with the addition of cadmium sulphide (CdS) and a strong off-shore supply chain and customer base," says Advanced Photonix's president & CEO Rick Kurtz. "We are looking forward to building and leveraging those relationships to expand our revenue growth and lower our unit costs," he adds. "We have had a long relationship with Silonex, working together as customer and supplier, and believe the synergies of our engineering, sales and customer base will provide a strong foundation for future growth."
To facilitate the transaction, the firm has established the new Canadian subsidiary Advanced Photonix Canada Inc.
"In addition, because our previously announced supply chain issues have lowered expected revenues from the sale of our HSOR line of products, we are introducing a cost-cutting program which includes a 20% wage and compensation reduction by 'C' management and the board of directors over the next five months, and a suspension of the company 401k match," adds Kurtz.
