Laser Powerhouse Lumibird Secures Prima Industrie's High-Tech Businesses

Posted  by GoPhotonics

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The LUMIBIRD Group, the European leader in laser technologies, signed an agreement with the Italian company Prima Industrie to acquire its subsidiary Convergent Photonics (Turin, Italy) and the Convergent assets of Prima Industrie North America (Boston, USA) on May 15. This acquisition gives Lumibird a strategic advantage in high power semiconductor and fibre lasers and opens up new markets.

Convergent Photonics has over 50 years of experience in the design and manufacture of semiconductor lasers and laser diode packaging, as well as the design and manufacture of high-power fibre lasers for the medical sector (urology, surgery, etc.). 80 qualified and experienced people, divided between Italy and the USA, will join the Lumibird Group. The Convergent activities had a turnover of 15 million euros in 2022 for a negative EBITDA of 1.5 million euros.

This acquisition is a new step in the group's investment strategy and has a double strategic interest by strengthening its strategic positioning in semiconductors and very high power fibre lasers, and by opening up new market segments.

Strengthening sovereignty with semiconductors and very high power fibre lasers

This acquisition will enable Lumibird to further strengthen its sovereignty in the field of lasers and optronics. It also completes, with the arrival of the semiconductor, the strategic investments already made in optical fibre and derived components. It will enable Lumibird to become independent in the supply of critical components and will give it greater capacity for innovation in materials and components, while internalising the margins on expensive components.

Opening up new markets

The integration of these activities will enable the development of the medical branch in markets other than ophthalmology, where the group is already in a leadership position. In total synergy with the photonics branch, which will supply high-powered lasers, the path to applications in Urology and Gynaecology is open.

The parties expect the transaction to be completed in the second half of 2023, subject to regulatory approvals in Italy and the US.

Lumibird will finance its acquisition through its available cash or by drawing on the bank lines available to the group, in compliance with the covenants.

Marc Le Flohic, Chairman and CEO of Lumibird, said: "This acquisition strengthens several of our technological pillars and is perfectly in line with Lumibird's strategy of verticalization and sovereignty. It allows us to vertically integrate critical semiconductor technologies, to strengthen our sovereignty over laser technologies in Europe, and to diversify into high growth markets."

Giovanni Negri, CEO of Prima Industrie commented: "After many years of being successfully active in the development and production of laser sources, Prima Industrie has decided to dispose of laser source business unit, Convergent, in order to focus on main business of sheet metal machinery and systems. We are pleased to sell it to a player such as Lumibird that will undoubtedly allow Convergent to express all its huge potential, based on a high level of technological know-how".

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