Spectris has acquired US provider of handheld instruments for material analysis, SciAps, for a cash consideration of £204m.

The Massachusetts-based firm develops instruments leveraging X-ray fluorescence (XRF) and laser induced breakdown spectroscopy, designed to identify compounds, minerals and minerals for industries including mining, metal recycling, food, manufacturing and agriculture.

SciAps is expected to deliver sales of £55m in 2024, representing a five-year revenue CAGR of 30%, with an adjusted EBITDA of £9.5m.

The London-based precision measurement insight firm said the acquisition will be integrated into Malvern Panalytical in Spectris Scientific, aligning it with the group’s strategy to add to Malvern’s portfolio and create a "highly synergetic" combination.

The deal consists of an initial payment of £157m to SciAps, with a deferred payment element of up to just over £47m, payable on the delivery of agreed financial metrics.

The firm added that following the transaction, it remains in a net cash position with further balance sheet capacity, and it is set to complete its £150m share buyback scheme by the end of the financial year.

Chief executive officer (CEO) at Spectris, Andrew Heath, said: "Value enhancing M&A is central to our compounding growth strategy. SciAps is an excellent business and a great addition to Spectris Scientific, bringing complementary technology and strengthening our offering, including our innovative digital solutions.

"The acquisition will strengthen Spectris' position in a number of key end markets benefiting from long-term, secular and sustainability growth trends, as well as accelerating sales of SciAps and Malvern Panalytical's offerings through each other's sales and distribution channels. We look forward to welcoming the SciAps team and providing our customers with a wider portfolio of market leading solutions, helping to enhance their processes and productivity."

CEO at SciAps, Don Sackett, added: "We are delighted to be joining the Malvern Panalytical business under the Spectris Scientific umbrella. We bring to the portfolio handheld and laser-based elemental analysis, portable benchtop XRF, with a strong new product pipeline and plug-in capability to Malvern Panalytical's innovative digital platform. This is an exciting combination and Spectris is the perfect partner to maximise the success of our combined capabilities and technologies for customers."

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