NEW YORK, July 30 (Reuters) - U.S. solar equipment maker GT Solar International Inc said on Friday it would buy privately held sapphire maker Crystal Systems for about $57.8 million in cash and stock, giving it a foothold in the fast-growing LED market.
Sapphire is used as a substrate in the light-emitting diode or LED industry.
The company said it would pay Crystal Systems about $24 million in cash and issue 5.4 million shares. GT Solar's Thursday close of $6.25 puts the stock portion of the deal at about $33.8 million.
The deal, which is expected to add to GT Solar's operating income over the next 18 months and to earnings per share by year-end 2012, also has a $21 million cash earn-out provision.
GT Solar shares rose 4 percent to $6.49 in morning trade. The stock has had a roller-coaster ride following its debut on the Nasdaq in 2008, having fallen more than 60 percent since.
(Reporting by Adveith Nair, editing by Matthew Lewis) Keywords: GTSOLAR/ (adveith.nair@thomsonreuters.com; Reuters Messaging: adveith.nair.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Sapphire is used as a substrate in the light-emitting diode or LED industry.
The company said it would pay Crystal Systems about $24 million in cash and issue 5.4 million shares. GT Solar's Thursday close of $6.25 puts the stock portion of the deal at about $33.8 million.
The deal, which is expected to add to GT Solar's operating income over the next 18 months and to earnings per share by year-end 2012, also has a $21 million cash earn-out provision.
GT Solar shares rose 4 percent to $6.49 in morning trade. The stock has had a roller-coaster ride following its debut on the Nasdaq in 2008, having fallen more than 60 percent since.
(Reporting by Adveith Nair, editing by Matthew Lewis) Keywords: GTSOLAR/ (adveith.nair@thomsonreuters.com; Reuters Messaging: adveith.nair.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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