Optos plc (LON:OPTS) commenced a proposed takeover of Opto Global Holdings Pty Ltd with an offer worth up to $14.8 million.
The Scotland-based medical retinal imaging device firm wants to build up its product offering in the U.S. and Europe while expanding into Opto Global’s markets "in the Far and Middle East, Australasia, Africa and Latin America," according to the company.
Australia-based Opto Global is an ophthalmic device maker and currently has "minimal" sales in the U.S. and European Union, but does have rights to sell most of its products in these markets, according to Optos.
"This acquisition brings a number of complementary products which we can market through our sales channel in our core US and EU markets. In addition, through this deal we expand our geographic reach into new markets, particularly the Far East and gain access to a strong distributor network and pipeline of new product opportunities," said Optos CEO Roy Davis in prepared remarks.
The company said it today made a conditional cash and stock offer to the shareholders of Opto Global. The offer consists of an initial lump sum of $10.8 million in cash, $1 million in newly issued shares of Optos, and a cash payment of up to $3 million based on the revenue-related milestones. The deal is still subject to Opto Global shareholder approval.