GT Solar: Acquisition of Crystal Systems Inc for $24M

GT Solar International Inc has acquired the privately held company, Crystal Systems Inc, a crystalline growth technology manufacturer of top quality large area sapphire substrates. GT Solar is a leader in global polysilicon production technology. Additionally GT Solar supplies crystalline ingot systems and related photovoltaic manufacturing services to the solar industry worldwide.

“Crystal Systems’ sapphire process knowledge complements our expertise in silicon growth technologies and we believe this combination will allow us to quickly deliver products that leapfrog sapphire crystallization technology available from other suppliers,” stated Tom Gutierrez, GT Solar’s president and CEO. “We expect to capitalize on the attractive opportunities we have identified in equipment, LED, and high tech specialty markets that require high-quality, low cost crystalline substrates. Crystal Systems has a rich history of innovation and we believe the combination of their technical expertise supported by our proven global operating experience and available capital resources will accelerate the adoption of new low-cost, high-quality crystalline sapphire solutions.”

The terms of the agreement indicate that the purchase consideration included around $24 million in cash, plus 5.4 million shares of GT Solar common stock and a $21 million cash earn out. The cash earn out provision is dependent upon the attainment of certain specific financial and technical targets. Crystal Systems is a proven profitable enterprise, with anticipated revenues of around $16 million for the 2010 calendar year. The Company will contribute significantly to GT Solar’s operating income over the following 18 months, and is due to be accretive on an EPS basis by the year end FY12.