OSI Systems To Acquire American Science And Engineering - Quick Facts

(RTTNews) - OSI Systems, Inc. (OSIS) announced a definitive agreement to acquire American Science and Engineering, Inc. (ASEI), a provider of detection solutions for advanced cargo, parcel, and personnel inspection, for $37.00 per share in cash, representing a total purchase price of approximately $187 million, net of $82 million of AS&E cash and cash equivalents as of March 31, 2016. OSI said the acquisition of AS&E is consistent with its strategy to expand security offerings, enhance product development capabilities, and grow in attractive end markets and geographies.

OSI Systems expects the transaction to result in at least $18 million of annual pre-tax cost synergies within the first two years post-closing. The transaction is expected to be accretive to OSI Systems' fiscal 2017 non-GAAP earnings per share excluding one-time transaction expenses and integration costs and at least 10% accretive to OSI Systems' fiscal year 2018 GAAP earnings per share.

AS&E is a global provider of threat and contraband detection solutions for ports, borders, military, critical infrastructure, law enforcement, and aviation. AS&E offers advanced X-ray inspection systems to combat terrorism, drug smuggling, illegal immigration, and trade fraud.