FEBRUARY 27--InVision Technologies Inc. (Newark, CA; www.invision-tech.com) has entered into a definitive agreement to acquire YXLON International Holding GmbH for 38.6 million euros. The acquisition significantly furthers a core component of InVision's strategy--to strengthen the company's position in certified explosives-detection systems with continued performance advancements. The acquisition also diversifies InVision's revenues through YXLON's position in the market for industrial nondestructive testing (NDT) and security-related x-ray components.
The transaction will be funded with cash and is expected to close by the end of March 2003. InVision will make an additional payment of 10 million euros if YXLON's XES 3000 or XES 3500 x-ray diffraction product is certified for explosives detection by the US Transportation Security Administration by December 31, 2003. The XES 3000 system has recently been submitted for certification testing. A number of XES 3000 systems are operated by German airport authorities, the Israel Airport Authority, and by the US Federal Aviation Administration Technical Center for testing purposes.
YXLON International is a privately held company based in Hamburg, Germany, with operating units in the United States, Denmark, and Japan. The acquisition will further expand InVision's presence in Europe and provide entry into the German aviation-security market. YXLON generated revenues of $57.5 million for the year ended September 30, 2002. The company has developed x-ray-based diffraction for explosives detection over the past decade and is a supplier of x-ray-based NDT equipment, with a presence in more than 60 countries including the United States.
InVision expects the transaction to be slightly dilutive to earnings in 2003 and accretive in 2004. Further financial details and expectations related to the combined businesses will be provided after the transaction is completed.
