Brooks Announces Agreement to Acquire Precise Automation

Rhea-AI Summary

Brooks Automation (Nasdaq: BRKS) has announced a definitive agreement to acquire Precise Automation, a leader in collaborative robots, for approximately $70 million. The transaction is set to close by the end of April 2021, subject to customary conditions. Precise Automation generated $17 million in revenue over the last year and specializes in automation solutions for various sectors, including laboratory and semiconductor industries. The acquisition aims to enhance Brooks' product offerings and capitalize on growth opportunities in the collaborative robot market.

Positive

• Acquisition of Precise Automation for $70 million enhances Brooks' technology portfolio.
• Precise Automation's revenue of $17 million last year indicates a solid business foundation.
• The acquisition is expected to be immediately accretive to earnings, boosting financial performance.

Negative

• Integration challenges may arise from merging operations with Precise Automation.
• Potential market risks could affect the anticipated benefits of the acquisition.

CHELMSFORD, Mass., April 26, 2021 /PRNewswire/ --  Brooks Automation, Inc. (Nasdaq: BRKS) today announced that it has entered a definitive agreement to acquire Precise Automation, Inc., a leading developer of collaborative robots and automation subsytems headquartered in Fremont, CA.  The total cash purchase price for the acquisiton will be approximately $70 million, subject to working capital and other adjustments.  The transaction is expected to close by the end of April upon satisfaction of customary closing conditions. 

Precise Automation's proprietary technology enables human-robot workflows in a safe and easy-to-use manner, automating processes that could not be addressed practically in the past. The company's collaborative robots, which include SCARA, 6-axis and Cartesian configurations, are delivered fully assembled and designed for easy system integration by end users and OEM customers.  Precise Automation's products are used in a variety of end markets including laboratory automation and semiconductor and electronics manufacturing. Laboratory automation applications include drug discovery, analytical laboratory, clinical diagnostics, and genomics.       

Steve Schwartz, President and CEO of Brooks commented, "Precise provides Brooks with a product offering and technology portfolio that is well positioned to take advantage of the exciting growth opportunities in the collaborative robot market. Their history of innovation in vision technology, precision motion, integrated controllers and direct drive motors and track record of solving customer challenges in laboratory and semiconductor automation makes Precise a great fit with Brooks."

Co-founders Brian Carlisle and Dr. Bruce Shimano, two industry visionaries with over 35 years each of robotics experience, will join Brooks and continue to lead Precise Automation reporting to Dave Jarzynka, President of the Brooks Semiconductor Solutions Group.  Precise Automation generated $17 million in revenue over the last twelve months.   The Company expects the acquisition to be immediately accretive to earnings.

About Brooks Automation
Brooks (Nasdaq: BRKS) is a leading provider of life science sample-based solutions and semiconductor manufacturing solutions worldwide.  With over 40 years as a partner to the semiconductor manufacturing industry, Brooks is a provider of industry-leading precision vacuum robotics, integrated automation systems and contamination control solutions to the world's leading semiconductor chip makers and equipment manufacturers. The Company's Life Sciences business provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally.  Brooks Life Sciences' GENEWIZ division is a leading provider of gene sequencing and gene synthesis services.   Brooks is headquartered in Chelmsford, MA, with operations in North America, Europe and Asia.  For more information, visit www.brooks.com.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Brooks' financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. These forward-looking statements include but are not limited to statements about the benefits of the Company's acquisition of Precise Automation and the expected value of the acquisition to the Company. Factors that could cause results to differ from our expectations include the following:  the impact of the COVID-19 global pandemic on the markets we and Precise Automation serve; uncertainties in global political and economic conditions, our ability to integrate the acquired business and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, current reports on Form 8-K and our quarterly reports on Form 10-Q.

INVESTOR CONTACTS:
Sara Silverman
Director, Investor Relations
Brooks Automation
978.262.2635
sara.silverman@brooks.com

Sherry Dinsmore
Brooks Automation
978.262.4301
sherry.dinsmore@brooks.com

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SOURCE Brooks Automation

FAQ

What is the purpose of Brooks Automation's acquisition of Precise Automation?

The acquisition aims to enhance Brooks' technology offerings in the collaborative robot market and leverage growth opportunities.

How much is Brooks Automation paying for Precise Automation?

Brooks Automation is acquiring Precise Automation for approximately $70 million.

What revenue did Precise Automation generate prior to the acquisition?

Precise Automation generated $17 million in revenue over the last twelve months.

When is the acquisition of Precise Automation expected to close?

The transaction is expected to close by the end of April 2021.

Will the acquisition of Precise Automation affect Brooks Automation's earnings?

Yes, the acquisition is expected to be immediately accretive to earnings.