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Cognex Corp. Acquires DVT

July 1, 2005
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NATICK, MA-Cognex Corp., a supplier of machine vision systems, acquires DVT Corp., a privately held company based in Duluth, GA. Under the terms of the acquisition, Cognex purchased all of the outstanding shares of DVT for approximately $115 million, consisting of a cash payment of $104 million made at the closing, and a final payment of up to an additional $11 million in cash to be paid at the end of a one-year escrow period.

Cognex plans to maintain operations at DVT's current facility in Georgia, and continue selling and supporting DVT's vision products. DVT is a provider of low-cost, easy-to-use vision sensors, which it primarily sells to the factory-floor segment of the machine-vision business.

"This is the largest acquisition that Cognex has ever completed...in terms of price, in terms of revenue and most importantly, in terms of the positive impact that it will likely have on our company," says Dr. Robert J. Shillman, chairman and chief executive officer

of Cognex.

According to James Hoffmaster, president and chief operating officer, Cognex has been expanding its vision-product line in recent years, with its In-Sight brand of products growing to more than $60 million in five years.

"During 2004, Cognex started building a network of distributors, and prior to this acquisition, we had signed over 40 distributors, mostly in North America. With the acquisition of DVT, Cognex immediately gains a worldwide network of more than 150 additional distributors, all fully trained in selling and supporting machine vision products," adds Hoffmaster.

As a result of the acquisition, Cognex expects an increase in its revenue of approximately $15 to $20 million during fiscal year 2005. The acquisition is expected to be neutral to earnings in 2005, and accretive, even including acquisition charges, in fiscal year 2006.

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