Photo Photo Photo Photo

Photonics Industry M&A Activity

Premium Priced Strategic Acquisitions

Despite persistent financial and geopolitical risk, M&A activity for 2014 in the photonics industry and vertical markets served surpasses that of the previous five years.  Having been through a long period of organic growth, strategic buyers turn to M&A to keep growing - creating more competition for financial buyers and improving valuations.

So far this year, a handful of lower middle market companies with strong IP portfolios realizing premium valuations from strategic buyers are driving-up average Enterprise Value/Revenues multiples. 

Leading the pack are: Selah Genomics, a nanotechnology company commercializing bio-sensing contrast agents that replace fluorescent dyes and quantum dots for biomedical and anti-counterfeiting applications (56x); Airinov, a provider of agronomic drone solutions based on optical sensor technology (38x); Plextronics, a developer of printed lighting, display, solar, and other organic electronics (20x); Fusion IP who commercializes third-party IP via investments in spin-out companies (128x), and Q-Chip, a biopharmaceutical drug delivery company (160x).

Unprecedented in the previous five years, the Photonics sector saw at least as much, if not more, activity in the volume of transactions than the market sectors it enables.

Read more and view transaction detail >

Robust Markets Enabled by Biophotonics

Private Placements

Biophotonics is the interdisciplinary science of applying light to biological life sciences – such as genomics, molecular and cell biology, neuroscience, pharmacology, and biomechanics.  It is a core technology enabling Medical Diagnostics, Medical Devices, Therapeutics, Life & Environmental Sciences and Medical Imaging markets.

The market for private placements in development stage and high growth life science and healthcare businesses is robust. In 2013, a reported $3.6billion of private placements went to work commercializing technology and scaling businesses with core enabling technology in biophotonics. In 2014, 594 private placements topped $5.1billion.

Read more and view transaction detail >

Growing Our Core Photonics Businesses

Transcending the $10million Plateau

According to research from SPIE, there are about 2750 companies worldwide supplying more than $150billion of photonics components and materials.  Of these companies, more than 2000 realize revenues of less than $10million, accounting for less than 4% of worldwide sales.  With photonics components at the core of most modern technologies, this is an exciting time for the industry.  So, have the stars aligned for more photonics companies to transcend the $10million plateau?  If so, what can a small business do to become a larger market participant?

Explore the question with Linda Smith of CERES Technology Advisors and Jan Melles of Photonics Investments.

Read more >

M&A and Private Placement Transaction Database

Subscription Service for Strategic Buyers & Sellers

Whether you are buying, selling, or planning, access to relevant, current, and accurate information is critical.  CERES will offer a subscription service to its database of M&A and private placement transactions for target companies employing photonics technologies.

CERES transaction database is designed for strategic buyers and sellers.  It includes access to 4000+ M&A transactions, 5000+ private placement transactions, detailed target company descriptions, comprehensive deal comments, valuation multiples, and more.

Read more >

SPIE Photonics West Panel Workshop

Financing Life Sciences & Healthcare Ventures

Join us February 10 at Photonics West in San Francisco, CA for a panel workshop dedicated to financing life science and healthcare businesses. The panel's expertise crosses angel investing, venture capital and private equity, strategic corporate development, and monetizing intellectual property.  Moderated by Linda Smith, discussions will be around financing strategies and return expectations - as well as micro and macro trends influencing competition for capital and valuations.

Read more >