Faro GeoSLAM acquisition

Faro acquires GeoSLAM for £22.0m and stock

FARO® Acquires Mobile Scanning Market Leader, GeoSLAM™, a leading provider of mobile scanning solutions based on LiDAR.

James Davis

Lake Mary, Florida, the first of September 2022 – The acquisition of UK-based GeoSLAM, a leading provider of mobile scanning solutions with proprietary high-productivity simultaneous localization and mapping (SLAM) software to create 3D models for use in Digital Twin applications, was announced by FARO® Technologies, Inc. (Nasdaq: FARO), a global leader in 4D digital reality solutions.

FARO® Technologies, Inc. is a publicly traded company with a ticker symbol of FARO. GeoSLAM was established in 2012, and it is anticipated that the incorporation of this company will greatly broaden and accelerate FARO's market growth opportunities in the mobile scanning arena.

“Joining with FARO represents the next step in the growth of GeoSLAM and the establishment of mobile mapping as a driver for growth in the way businesses map and understand their spaces,” added Andy Parr, GeoSLAM CEO. “Both companies share a vision of the importance of mobile scanning in the burgeoning digital reality capture market.”

During the fiscal year that ended on March 31, 2022, GeoSLAM generated revenue of £14.5 million and had an EBITDA margin of 18%.

The funding for the transaction came from available cash reserves as well as stock consideration, and the deal was finalized on September 1, 2022.

“We are thrilled to add GeoSLAM’s handheld 3D scanning technology to our portfolio of cutting-edge data capture solutions,” said Michael Burger, FARO President and CEO.“FARO now offers the industry’s broadest set of 4D data capture solutions, including 3600 camera-based images, mobile scanning and stationary high-accuracy laser scanning, allowing customers to balance the need for accuracy, speed and detail depending on their requirements."

In accordance with the terms of the agreement, owners of GeoSLAM were given a cash payment in the amount of £22.0 million as well as 495,562 shares of FARO stock that are subject to the standard requirements for a lock-up period.

FARO forecasts that the purchase will contribute positively to non-GAAP earnings per share in the year 2023.

Advisors

GeoSLAM was advised by Deloitte’s Midlands Advisory Corporate Finance team, led by Darren Boocock, who said

“This is a fantastic result for all concerned. It also demonstrates the continued interest in leading UK technology companies. GeoSLAM is a real Midlands success story. It has developed a range of market leading solutions for global markets and has a fantastic pipeline of new products and will benefit from being part of FARO. We wish Andy Parr and the rest of the GeoSLAM team continued success.”

Addleshaw Goddard provided legal advice to GeoSLAM, led by Richard Hunt, whilst financial and tax due diligence was provided by Grant Thornton, led by Paul Kithoray and Alex Hyde.

Corporate & FinanceHardware

James Davis

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