ProPhotonix has been sold to Exaktera, a portfolio company of Union Park Capital

ProPhotonix

ProPhotonix, headquartered in Salem, New Hampshire, is a designer and manufacturer of light-emitting diode (LED) illumination systems and laser diode modules with operations in the UK and Ireland. For more than 25 years, the company has developed unique expertise across applications, including machine vision, ultra-violet (UV) curing, medical equipment and security.

The Deal

ProPhotonix’s common stock was, until acquisition, traded on the AIM market of the London Stock Exchange (AIM:PPIX) and the OTC market in the United States (OTC:STKR). The board of ProPhotonix concluded that the benefit of being a thinly traded independent public company was outweighed by the costs and regulatory compliance involved. The board accordingly appointed Lincoln to explore strategic and financial alternatives. As part of this exercise, Lincoln ran a sale process which resulted in the recommendation of an offer from Exaktera, a holding company backed by Union Park Capital, that is building a position in the high-precision original equipment manufacturing (OEM) market. Exaktera’s offer was at a premium of approximately 54% over the thirty-day average closing price of ProPhotonix’s common stock. The transaction was approved at a stockholders’ meeting on December 15, 2021.

Our Perspective

Julian Tunnicliffe, Managing Director in Lincoln’s Industrials Group, commented, “This was a complicated take-private transaction because ProPhotonix was headquartered in the United States, its operations were in the UK and Ireland and its common stock was traded in both the United States and the UK. ProPhotonix is an attractive high-technology company, supplying renowned OEM customers worldwide. It has found a great home in Exaktera, a portfolio company of Union Park Capital, which also owns Z-Laser in Germany.”

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