Laser Photonics Signs Definitive Agreement To Acquire Control Micro Systems

Laser Photonics (NASDAQ: LASE) has signed a definitive agreement to acquire Control Micro Systems (CMS) through an asset purchase agreement. The acquisition aims to expand LPC’s presence in the pharmaceutical and medical manufacturing sector, particularly in controlled-release tablet production and packaging compliance. CMS specializes in precision laser solutions for pharmaceutical applications, including laser drilling systems for controlled-release medications and marking systems for traceability. LPC plans to retain all CMS employees and leverage its existing sales and marketing infrastructure to unlock additional value. The acquisition provides entry into a recession-resistant sector with significant barriers to entry.

Laser Photonics (NASDAQ: LASE) ha firmato un accordo definitivo per acquisire Control Micro Systems (CMS) attraverso un accordo di acquisto di asset. L’acquisizione mira ad ampliare la presenza di LPC nel settore manifatturiero farmaceutico e medico, in particolare nella produzione di compresse a rilascio controllato e nella conformità degli imballaggi. CMS è specializzata in soluzioni laser di precisione per applicazioni farmaceutiche, inclusi sistemi di perforazione laser per farmaci a rilascio controllato e sistemi di marcatura per la tracciabilità. LPC prevede di mantenere tutti i dipendenti di CMS e sfruttare la propria infrastruttura vendite e marketing esistente per sbloccare ulteriore valore. L’acquisizione offre un ingresso in un settore resistente alle recessioni con barriere all’entrata significative.

Laser Photonics (NASDAQ: LASE) ha firmado un acuerdo definitivo para adquirir Control Micro Systems (CMS) mediante un acuerdo de compra de activos. La adquisición tiene como objetivo expandir la presencia de LPC en el sector de fabricación farmacéutica y médica, particularmente en la producción de tabletas de liberación controlada y el cumplimiento del empaque. CMS se especializa en soluciones láser de precisión para aplicaciones farmacéuticas, incluidos sistemas de perforación láser para medicamentos de liberación controlada y sistemas de marcado para trazabilidad. LPC planea retener a todos los empleados de CMS y aprovechar su infraestructura de ventas y marketing existente para desbloquear valor adicional. La adquisición proporciona entrada a un sector resistente a la recesión con barreras significativas de entrada.

레이저 포토닉스 (NASDAQ: LASE)가 자산 매매 계약을 통해 컨트롤 마이크로 시스템(Control Micro Systems, CMS)을 인수하기 위한 확정 계약을 체결했습니다. 이번 인수는 LPC의 제약 및 의료 제조 부문에서의 입지를 확장하는 것을 목표로 하며, 특히 조절 방출 정제 생산 및 포장 준수에 중점을 둡니다. CMS는 제약 응용을 위한 정밀 레이저 솔루션을 전문으로 하며, 조절 방출 약물에 대한 레이저 드릴링 시스템 및 추적 가능성을 위한 마킹 시스템을 포함합니다. LPC는 CMS 직원 모두를 유지하고 기존의 판매 및 마케팅 인프라를 활용하여 추가 가치를 창출할 계획입니다. 이 인수는 진입 장벽이 상당히 높은 경기 불황 저항 분야에 진입할 수 있는 기회를 제공합니다.

Laser Photonics (NASDAQ: LASE) a signé un accord définitif pour acquérir Control Micro Systems (CMS) par le biais d’un accord d’achat d’actifs. L’acquisition vise à étendre la présence de LPC dans le secteur de la fabrication pharmaceutique et médicale, en particulier dans la production de comprimés à libération contrôlée et la conformité de l’emballage. CMS se spécialise dans les solutions laser de précision pour les applications pharmaceutiques, y compris des systèmes de perçage laser pour les médicaments à libération contrôlée et des systèmes de marquage pour la traçabilité. LPC prévoit de conserver tous les employés de CMS et d’exploiter son infrastructure de vente et de marketing existante pour libérer une valeur supplémentaire. L’acquisition offre un accès à un secteur résistant aux récessions avec des barrières d’entrée importantes.

Laser Photonics (NASDAQ: LASE) hat einen endgültigen Vertrag zur Übernahme von Control Micro Systems (CMS) durch eine Vermögensübernahmevereinbarung unterzeichnet. Die Übernahme zielt darauf ab, die Präsenz von LPC im Pharmabereich und in der medizinischen Fertigung zu erweitern, insbesondere in der Produktion von kontrollierten Freisetzungstabletten und der Einhaltung von Verpackungen. CMS ist auf präzise Laserlösungen für pharmazeutische Anwendungen spezialisiert, einschließlich Laserbohrsystemen für kontrollierte Medikamente und Markierungssystemen für die Rückverfolgbarkeit. LPC plant, alle Mitarbeiter von CMS zu behalten und die bestehende Vertriebs- und Marketinginfrastruktur zu nutzen, um zusätzlichen Wert zu schaffen. Die Übernahme bietet den Einstieg in einen rezessionsresistenten Sektor mit erheblichen Eintrittsbarrieren.

Positive

• Entry into recession-resistant pharmaceutical and medical manufacturing sector
• Acquisition of established pharmaceutical laser technology and expertise
• Retention of CMS’s technical workforce and engineering talent
• Opportunity to leverage existing sales infrastructure for CMS products
• Diversification into high-barrier-to-entry market segment

Negative

• CMS currently underperforming in sales and marketing
• Undisclosed acquisition terms create uncertainty about financial impact

Insights

This strategic acquisition marks a significant expansion into the lucrative pharmaceutical and medical laser markets. The deal brings several key advantages:

• Entry into a recession-resistant sector with high barriers to entry
• Access to CMS’s established relationships with major pharmaceutical companies
• Acquisition of specialized engineering talent and intellectual property
• Potential revenue synergies by leveraging LPC’s sales infrastructure

While financial terms weren’t disclosed, CMS appears undervalued due to marketing investment, suggesting potential upside through operational improvements. The controlled-release medication market and increasing FDA compliance requirements create substantial growth opportunities. This diversification reduces LPC’s cyclical exposure while entering a high-margin, regulated industry.

The acquisition positions LPC strategically in the growing controlled-release pharmaceutical manufacturing sector. CMS’s laser drilling technology for precise aperture creation in tablets is important for next-generation drug delivery systems. The technology enables consistent drug release rates, improving patient compliance and treatment efficacy. Their ultrafast laser systems for processing sensitive pharmaceutical materials represent cutting-edge capabilities that address increasing demand for precision in drug delivery device manufacturing. The combination of CMS’s technical expertise with LPC’s market reach could accelerate adoption of advanced laser solutions in pharmaceutical manufacturing.

10/31/2024 – 07:00 AM

Acquisition to provide entry into the medical and pharmaceutical laser markets

ORLANDO, Fla.–(BUSINESS WIRE)–
Laser Photonics Corporation (LPC) (NASDAQ: LASE), a leading global developer of industrial laser systems for cleaning and other material processing applications, today announced it signed a definitive agreement to acquire Control Micro Systems, Inc. (CMS) through an asset purchase agreement (APA). The acquisition is expected to provide an opportunity for Laser Photonics to strategically broaden its market reach, engineering talent and technology portfolio. Terms of the deal were not disclosed.

Wayne Tupuola, CEO of Laser Photonics, commented:

“This acquisition will enable LPC to expand into the massive, growing pharmaceutical and medical manufacturing vertical, a recession-resistant sector with significant barriers to entry, while diversifying our business and providing us with a significant new market opportunity. CMS has worked with world-class pharmaceutical companies, delivering solutions that meet the industry’s most stringent standards for both enabling controlled-release tablets and traceability of medications and packaging for compliance.”

“We believe CMS is under-valued due to its lack of investment in sales and marketing over the past few years that will benefit from leveraging LPC’s existing sales and marketing infrastructure. LPC plans to unlock additional value through targeted marketing and customer engagement.”

“In addition to focusing on expanded sales and marketing, we plan to hire all CMS’ existing workforce, including engineers and customer support personnel, who we believe will add significant value to our company. Upon closing the transaction, LPC is committed to ensuring a seamless transition for ALL existing CMS employees. Current CMS customers can also expect uninterrupted service and support during this transition.”

Market Opportunity in Pharmaceutical and Medical Laser Solutions

The pharmaceutical market for controlled-release medications is expanding rapidly, driven by the growing need for more effective and patient-friendly drug delivery systems. Controlled-release tablets, which gradually release medication over time, require precision manufacturing techniques to ensure the proper dosage and timing of active ingredient release. Laser technology plays a critical role in creating micro-drilled apertures in these tablets, ensuring accurate and consistent drug release.

With global pharmaceutical companies focusing on enhancing drug delivery mechanisms, the demand for laser-based solutions like those provided by CMS is expected to rise. CMS’ experience in supplying laser systems to pharmaceutical companies, coupled with Laser Photonics’ sales and marketing expertise, positions LPC to take full advantage of this growing market segment.

Additionally, regulatory bodies, including the FDA, are enforcing stricter serialization and traceability requirements, creating opportunities for laser marking systems to become essential in ensuring compliance. Lasers can precisely mark packaging with batch numbers, expiration dates and unique identifiers, helping pharmaceutical companies meet global standards for product safety and anti-counterfeiting measures.

CMS Products and Technologies

CMS has a well-established reputation for delivering precision laser solutions to the pharmaceutical industry, particularly for controlled-release tablet production and packaging compliance. Its laser drilling systems are critical for creating microscopic apertures in tablets, allowing for precise control over drug release rates. This technology is essential for the manufacturing of medications that require gradual, timed release of active ingredients, ensuring improved patient adherence and therapeutic effectiveness.

Additionally, CMS’s advanced laser marking systems are integral to pharmaceutical traceability. These systems enable precise, high-speed marking of batch numbers, expiration dates and unique product identifiers on both medications and packaging, ensuring compliance with global regulations such as those from the FDA and GMP. Laser marking plays a crucial role in preventing counterfeiting, safeguarding patient safety and maintaining the integrity of the pharmaceutical supply chain.

CMS also brings cutting-edge ultrafast laser technologies that enable non-contact processing of sensitive pharmaceutical materials, such as micro-components used in drug delivery systems. These systems reduce material waste and ensure the highest quality standards in production by offering unmatched precision without damaging delicate materials.

Diversification into a Recession-Resistant Vertical

This strategic acquisition expands Laser Photonics’ technological capabilities while adding a recession-resistant vertical to its business portfolio. The pharmaceutical industry, driven by constant medical demand, is less vulnerable to economic downturns, providing a stable revenue stream for LPC. The growing demand for controlled-release medications and the increasing need for precision laser solutions in pharmaceutical manufacturing further position LPC for long-term growth.

About Laser Photonics Corporation

Laser Photonics is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. Laser Photonics seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. Laser Photonics’ new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental and regulatory issues associated with old methods. As a result, Laser Photonics has quickly gained a reputation as a leader in industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aerospace, automotive, defense, energy, maritime, nuclear, and space industries are using Laser Photonics’ unique-to-industry systems. For more information, visit

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations as of the date of this press release and involve risks and uncertainties that may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. We encourage readers to review the “Risk Factors” in our Registration Statement for a comprehensive understanding. Laser Photonics Corp. undertakes no obligation to revise or update any forward-looking statements, except as required by applicable laws or regulations, to reflect events or circumstances after the date of this press release.

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Investor Relations Contact:

Brian Siegel, IRC, MBA

Senior Managing Director

Hayden IR

(346) 396-8696

laser@haydenir.com

Source: Laser Photonics Corporation

FAQ

What markets will LASE enter through the Control Micro Systems acquisition?

Through this acquisition, LASE will enter the pharmaceutical and medical manufacturing markets, specifically focusing on laser solutions for controlled-release tablets and packaging compliance.

How will LASE integrate Control Micro Systems’ workforce?

LASE plans to hire all existing CMS employees, including engineers and customer support personnel, ensuring a seamless transition while maintaining uninterrupted service for current customers.

What are the main products acquired by LASE in the CMS acquisition?

LASE acquired CMS’s laser drilling systems for controlled-release tablet production and laser marking systems for pharmaceutical traceability and compliance.

How will LASE improve CMS’s current market position?

LASE plans to enhance CMS’s market position by leveraging its existing sales and marketing infrastructure and implementing targeted marketing and customer engagement strategies.

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