Laird Acquires Nextreme Thermal Solutions Technology
Laird PLC ("Laird") today announces the acquisition of Nextreme Thermal Solutions, Inc. ("Nextreme"), the US based developer of thin-film thermoelectric technologies.
Nextreme's innovative technology, delivering high precision cooling in an ultra-small form factor, will advance Laird's leadership in its existing thermal management business. This is particularly beneficial as devices become smaller and more compact. Nextreme and Laird currently have a strategic design and distribution partnership, but the acquisition enables wider market access to serve current and potential new customers in application areas such as sensors, solar power and LEDs. In addition Laird provides the ability to rapidly scale-up Nextreme's operations in order to exploit the full potential of these next generation products.
Laird will acquire 100% of the equity of Nextreme for a cash cost of $1, with potential cash earn-out payments based on a multiple of 0.4 times revenue over a four year period from 2014 (capped at $60 million if $150 million in revenue is achieved). In 2013, Nextreme is expected to make a loss of $3 million as the Company moves from technology investment to mass production.
Nextreme's products and staff will be integrated into Laird's existing Thermal business unit.
Commenting on this acquisition, Chief Executive David Lockwood, said:
"Nextreme is the next generation in technology for thermoelectrics. It can fundamentally change the way we cool electronics at the most integrated levels while being produced in large volumes. This significant shift in technology will also enable new applications such as energy harvesting.
Nextreme is an excellent fit with our business growth strategy. Through this acquisition we will combine the most innovative technology with our market presence and ability to scale operations, to deliver added value to our customers and enable us to move into new segments."