Coda Octopus Group Announces Acquisition of Precision Acoustics Limited
Coda Octopus Group (NASDAQ: CODA) has completed the acquisition of Precision Acoustics , a UK-based leader in MHz ultrasound and acoustic measurement markets. The acquisition, valued at $5.16M in cash with potential additional earn-out payments of up to $1.29M, brings significant acoustic expertise and technologies primarily used in medical imaging and Non-Destructive Testing. Precision Acoustics generated $4M in revenue and $450K in net profit in FY2023. The strategic acquisition aims to leverage Precision Acoustics' technologies in the underwater commercial marine and Defense markets, expanding CODA's product offerings and solutions. No equity was allocated in this transaction.
Coda Octopus Group (NASDAQ: CODA) ha completato l'acquisizione di Precision Acoustics, un leader del Regno Unito nei mercati dell'ultrasuono in MHz e delle misurazioni acustiche. L'acquisizione, valutata 5,16 milioni di dollari in contante con potenziali pagamenti aggiuntivi di earn-out fino a 1,29 milioni di dollari, porta con sé una significativa esperienza e tecnologie acustiche principalmente utilizzate nell'imaging medico e nel collaudo non distruttivo. Precision Acoustics ha generato 4 milioni di dollari di fatturato e 450.000 dollari di profitto netto nell'anno fiscale 2023. L'acquisizione strategica mira a sfruttare le tecnologie di Precision Acoustics nei mercati marini commerciali subacquei e della difesa, espandendo l'offerta e le soluzioni di prodotti di CODA. Nessuna partecipazione azionaria è stata allocata in questa transazione.
Coda Octopus Group (NASDAQ: CODA) ha completado la adquisición de Precision Acoustics, un líder del Reino Unido en los mercados de ultrasonido en MHz y mediciones acústicas. La adquisición, valorada en 5,16 millones de dólares en efectivo con pagos adicionales de earn-out potenciales de hasta 1,29 millones de dólares, aporta una experiencia significativa y tecnologías acústicas principalmente utilizadas en imágenes médicas y pruebas no destructivas. Precision Acoustics generó 4 millones de dólares en ingresos y 450.000 dólares en beneficio neto en el año fiscal 2023. La adquisición estratégica tiene como objetivo aprovechar las tecnologías de Precision Acoustics en los mercados marinos comerciales submarinos y de defensa, ampliando la gama de productos y soluciones de CODA. No se asignaron acciones en esta transacción.
코다 옥토퍼스 그룹 (NASDAQ: CODA)는 영국의 MHz 초음파 및 음향 측정 시장의 선두주자인 프리시전 어쿠스틱스의 인수 작업을 완료했습니다. 이 인수는 현금으로 516만 달러의 가치가 있으며 최대 129만 달러의 추가 성과급 지급 가능성을 포함하고 있으며, 주로 의료 이미징 및 비파괴 검사에 사용되는 중요한 음향 전문 지식과 기술을 가져옵니다. 프리시전 어쿠스틱스는 2023 회계연도에 400만 달러의 수익과 45만 달러의 순이익을 올렸습니다. 전략적 인수의 목표는 프리시전 어쿠스틱스의 기술을 수중 상업 해양 및 방산 시장에 활용하여 코다의 제품 제공과 솔루션을 확장하는 것입니다. 이번 거래에서는 주식이 할당되지 않았습니다.
Coda Octopus Group (NASDAQ: CODA) a finalisé l'acquisition de Precision Acoustics, un leader basé au Royaume-Uni dans les marchés d'ultrasons en MHz et de mesure acoustique. Cette acquisition, évaluée à 5,16 millions de dollars en espèces avec des paiements supplémentaires potentiels pouvant atteindre 1,29 million de dollars, apporte une expertise acoustique significative et des technologies principalement utilisées dans l'imagerie médicale et les tests non destructifs. Precision Acoustics a généré 4 millions de dollars de revenus et 450 000 dollars de bénéfice net pour l'exercice 2023. L'acquisition stratégique vise à tirer parti des technologies de Precision Acoustics sur les marchés marins commerciaux sous-marins et de la défense, en élargissant l'offre de produits et les solutions de CODA. Aucun capital n'a été alloué dans cette transaction.
Coda Octopus Group (NASDAQ: CODA) hat die Übernahme von Precision Acoustics, einem führenden Unternehmen im Vereinigten Königreich im Bereich MHz-Ultraschall und akustische Messmärkte, abgeschlossen. Die Übernahme, die mit 5,16 Millionen Dollar in bar bewertet wurde, mit potenziellen zusätzlichen Earn-out-Zahlungen von bis zu 1,29 Millionen Dollar, bringt bedeutendes akustisches Fachwissen und Technologien mit, die hauptsächlich in der medizinischen Bildgebung und der zerstörungsfreien Prüfung eingesetzt werden. Precision Acoustics erwirtschaftete im Geschäftsjahr 2023 einen Umsatz von 4 Millionen Dollar und einen Nettogewinn von 450.000 Dollar. Die strategische Übernahme zielt darauf ab, die Technologien von Precision Acoustics in den unterwassergewerblichen und Verteidigungsmarkt zu integrieren, um das Produktangebot und die Lösungen von CODA zu erweitern. In dieser Transaktion wurde kein Eigenkapital zugewiesen.
- Precision Acoustics generated $4M revenue and $450K net profit in FY2023
- Cash-only acquisition preserves shareholder value (no equity dilution)
- Strategic expansion into medical imaging and NDT markets
- Potential technology synergies in underwater acoustics market
- Geographic proximity to existing CODA subsidiary enhances operational efficiency
- Significant cash outlay of $5.16M plus potential $1.29M in earn-out payments
- Integration risks with new market segments
Insights
This strategic acquisition strengthens CODA's market position with significant synergies. The deal metrics are compelling:
The acquisition brings valuable intellectual property and established relationships with standard-setting bodies, potentially creating new revenue streams in medical imaging and NDT markets. The proximity to CODA's existing subsidiary enables operational synergies and cost efficiencies. The all-cash transaction structure preserves shareholder equity while maintaining financial flexibility for future acquisitions.
The technological synergies in this acquisition are substantial. Precision Acoustics' expertise in MHz ultrasound and hydrophone design complements CODA's existing sonar technology portfolio. Their acoustic measurement capabilities and materials science knowledge can enhance CODA's Echoscope® and DAVD systems.
The cross-pollination potential between medical imaging, NDT and underwater applications creates multiple paths for innovation. The acquisition provides CODA with advanced R&D capabilities and expands their intellectual property portfolio, particularly valuable for defense and commercial marine applications. This positions CODA to develop more sophisticated underwater acoustic solutions.
ORLANDO, FL, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Coda Octopus Group, Inc. (“CODA” or the “Company”) (Nasdaq: CODA), a global market leader in 3D/4D/5D/6D imaging sonar technology for real time subsea intelligence and cutting-edge diving technology, today announced that it has completed the acquisition of Precision Acoustics Limited, based in Dorchester, UK, in close proximity to the Company’s subsidiary, Coda Octopus Martech Limited.
Precision Acoustics was formed in 1997 and is well established as a leading technical authority to the MHz ultrasound and acoustic measurement markets and is a global leader in the field of hydrophone design and other acoustic-related technologies which have wide application but are currently primarily used in the medical imaging and Non-Destructive Testing (NDT) markets. It is a leading innovator, developer and worldwide supplier of products, materials and customized services to the MHz ultrasound markets and has a sizable market share. Over many years, it has formed close working relationships with a number of national and global standard setting bodies (whose mandate is to set the national primary and measurement standards) and with academic institutions worldwide to further ultrasound research. Precision Acoustics has also authored many leading publications in this area.
Prior to the acquisition, the Company worked with Precision Acoustics on a number of underwater acoustic related research and development projects, and they have supplied the Company with their proprietary acoustic materials used for the Echoscope® and DAVD technology solutions.
They bring to the Group substantial acoustic thought leadership and expertise combined with years of domain knowledge and a complementary range of acoustic-related technologies which are today unleveraged in the underwater acoustics space (since their primary focus has been on medical imaging and NDT). Many of the Precision Acoustics technologies have subsea applications and the Company believes that it can leverage these in the underwater acoustic market which it has been a supplier to over 30 years. The acquisition of Precision Acoustics positions the Group to expand its offerings and solutions.
Annmarie Gayle, CODA’s Chairman and CEO, commented: “This was a carefully considered acquisition, and we are excited to have gained the trust and confidence of the Precision Acoustics team and complete the acquisition. It brings deep and established expertise in acoustics along with a wide range of products currently used in the medical imaging space and NDT fields, which is leverageable in the underwater commercial marine and Defense market. The combined strengths of Precision Acoustic and the rest of our Group companies, positions the Group to offer much more to the Defense Engineering space and the offshore underwater space and will bolster the Groups growth strategy. Finally, in their financial year ended December 2023, they generated
Dr. Andrew Hurrell, Principal Research Physicist of Precision Acoustics said “My colleagues and I are very excited to be able to bring our expertise, knowledge and skills to the broader Coda Octopus Group, where there are significant synergies in our skills set and customer base. We see the opportunities to join forces and combine our joint offerings thus providing a more complete solution for our common customers. At Precision Acoustics, we already have a large portfolio of clients that use our hydrophones, acoustic materials and test environments both for research and increasingly in non-destructive testing and medical applications, and the resources of a larger Group with electro-mechanical engineering capability and leading products in underwater technologies, will enable us to provide more functional solutions and even more complete solutions to our customers. It also opens opportunities to establish Precision Acoustics offerings and capabilities in the underwater market”.
The Company paid a net cash purchase price of
About Coda Octopus Group, Inc.
The Company, founded in 1994, is an established supplier to the Underwater/Subsea market. It supplies a range of hardware and software solutions to this market which includes key proprietary real time 4D/5D/6D imaging sonars, marketed under the name Echoscope® and Echoscope PIPE® addressing the underwater imaging sensor market along with new generation diving technology, Diver Augmented Vision Display (DAVD) system. The Company’s Echoscope PIPE® sonar generates real-time 3D/4D/5D images of moving objects underwater including in zero visibility water conditions. The Echoscope® technology is used globally for numerous applications in both the commercial offshore market and defense underwater markets. Applications for the Echoscope® technology include complex mapping underwater, subsea intervention, subsea asset placements, salvage and recovery, search and rescue, offshore renewables cable installations and surveys, marine construction, subsea infrastructure installation, mining applications, robotics (3D Perception and Depth), breakwater construction and monitoring, decommissioning, diving applications and port and harbor security.
The recently launched new generation of diving technology, DAVD, has the potential to change the way global diving operations are performed (both in the Defense and Commercial space) because it is a fully integrated singular system for topside control and fully connected diver HUD system, allowing both the topside and diver to share a range of critical information and visualize the same underwater scene. Furthermore, the DAVD integrates the Company’s sonar technology, which allows dive operations to be performed in zero visibility conditions, a common problem that besets these operations.
The Company also includes two discrete Defense engineering businesses Coda Octopus Martech Ltd (UK based) and Coda Octopus Colmek, Inc. (US based) whose primary business model is to supply sub-assemblies into broader mission critical programs in the capacity of sub-contractors to the Prime Defense Contractors. Their scope of supply under these programs typically includes concept, design, prototype, manufacturing, and post-sale support. This gives them the opportunity to have repeat orders for these sub-assemblies through the life of these programs.
For further information, please visit http://www.codaoctopusgroup.com or contact us at coda@codaoctopusgroup.com.
Forward Looking Statement
This press release contains forward-looking statements concerning Coda Octopus Group, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward‐looking statements. Those forward-looking statements include, without limitation, statements regarding the Company's expectations for the growth of the Company's operations and revenue. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, restrictions on our business operations due to the Pandemic, customer demand for our products and market prices; the outcome of our ongoing research and development efforts relating to our products including our patented real time 3D solutions; our ability to develop the sales force required to achieve our development and other examples of forward looking statement set forth in our Annual Report on Form 10-K for the year ended October 31, 2023, filed with the Securities and Exchange Commission on January 29, 2024. Coda Octopus Group, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Contact:
Geoff Turner
Coda Octopus Group, Inc.
1- 407-768- 0988
coda.ir@codaoctopusgroup.com
FAQ
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