Cognex sells business division to Ametek for $160M
Cognex, a Natick-based company that produces machine vision technology systems, industrial barcode readers and other technologies, has sold one of its business divisions for $160 million in cash.
The Cognex (Nasdaq: CGNX) division develops and manufactures software-based vision systems used to inspect surfaces of continuously processed materials for flaws and defects, and was sold to Berwyn, Penn.-based AMETEK (NYSE: AME).
The Surface Inspection Systems Division is headquartered in California, and the division’s sales were $60 million in 2014, or 12 percent of Cognex’s total revenue.
AMETEK is a manufacturer of electronic instruments and electro-mechanical devices with annual sales of $4 billion.
“The sale of our Surface Inspection Systems Division is a strategic decision for us,” said Robert Willett, president and CEO of Cognex, in a statement. “SISD is a profitable and well-managed business, but it does not fit Cognex’s long-term objectives and business model. With this sale, we can focus all of our efforts on discrete manufacturing where we see continued strong growth for our vision and ID products.”
Shares in Cognex were down slightly on Monday afternoon by about 1 percent to $50.