Market leader in the design and manufacture of optical systems for the cell biology research community

Belfast, 18 October, 2013

Andor Technology plc (AND.L, "Andor" or "the Company"), a global leader in the development and manufacture of high performance scientific digital cameras for academic, industrial and government applications, is pleased to announce that it has acquired the entire issued share capital of Spectral Applied Research Inc. for a consideration of C$11.3 million in cash (GBP £6.8 million). Further consideration, to a maximum value of C$5.0 million (GBP £3.0 million) in cash, may be payable by Andor under an earn-out provision in the event that Spectral exceeds an agreed average operating profit in the first three years of ownership. It is expected that Andor will receive in excess of C$3.6 million (GBP £2.2 million) of net assets as part of the acquisition.

Spectral is based in Toronto, Canada, and is a market leader in the design and manufacture of optical systems for the cell biology research community. The company has a strong fit with Andor in areas such as integrated laser engines, its patented Borealis illumination systems and its newly launched Diskovery platform. Diskovery is a spinning disk confocal system that provides powerful multi-modal imaging with applications in life and physical sciences. Spectral also provides customised OEM solutions and has an attractive customer base which overlaps with that of Andor. Spectral's innovative product portfolio strengthens Andor's systems offering by increasing differentiation against the competition as well as providing access to key intellectual property.

Spectral employs 32 people including the five founding shareholders, and all staff will remain with the business following completion. In the year ended 31 December 2012, Spectral reported revenue of C$5.6 million (GBP £3.4 million) and operating profit of C$0.4 million (GBP £0.2 million). Performance for the current year indicates encouraging levels of growth with revenue for the eight months to 31 August 2013 already at the same level as the prior full year.

Commenting on the acquisition, Conor Walsh, Chief Executive of Andor said:

"I am delighted to announce Andor's acquisition of Spectral. This transaction further enhances Andor's position in the Systems business, providing us with access to Spectral's key patented product set as well as a highly experienced and first class design team. We have already consolidated our research and development roadmaps and we see significant opportunities across both our Systems and OEM business. Spectral makes a fantastic addition to the wider Andor team and we are all excited about the new opportunities the combined business will bring."

Richard Berman, Chief Executive of Spectral said:

"Spectral is excited by the opportunities this acquisition will enable. The synergies between Spectral and Andor make possible an unmatched product offering that should excite our customers. As a technology provider, Spectral looks forward to providing our research and OEM customers with exciting new products in the future."

Further Information : http://www.spectral.ca

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