AUGUST 7, 2007--Photon Dynamics (San Jose, CA, USA; www.photondynamics.com), a supplier of integrated yield-management solutions for the flat-panel-display market, and privately held Salvador Imaging (Colorado Springs, CO, USA; www.salvadorimaging.com), an international supplier of high-performance digital cameras, have announced that Photon Dynamics has acquired all of the outstanding shares of Salvador Imaging in exchange for approximately $20 million. Salvador Imaging will be operated as a wholly owned subsidiary of Photon Dynamics, and employees of Salvador Imaging will become employees of Photon Dynamics. David Gardner, founder and CEO of Salvador Imaging, will be president of the subsidiary.
On April 23, 2007, Photon Dynamics entered into a joint venture agreement with Salvador Imaging. The joint venture resulted in the formation of Salvador Systems LLC, a Photon Dynamics Company, which was formed to address low-light visible digital imaging applications in the defense and security markets and unique inspection capabilities in industrial applications. Salvador Systems combined the digital-imaging core competencies of both Photon Dynamics and Salvador Imaging to provide highly sensitive color and monochrome cameras that can be used to provide persistent 24-hour surveillance capabilities from full daylight to starlight (night vision) conditions for the military and security markets. Under terms of the definitive merger agreement, the current joint venture and licensing agreements will dissolve, and Salvador Systems LLC will be absorbed into the acquisition of Salvador Imaging.