THE COMPANY

Plymouth-based Artemis, which had revenues of c£4.3m in FY23, is renowned for its expertise in a variety of cutting-edge applications, and is recognised as a global leader in designing advanced optical filters for tailored electro-optical systems and laser protection, as well as bespoke head-up display combiners.

The company works with its customers to develop customised, system-enabling optical filters, mirrors and pioneering helmet-mounted display patches. Its products cater to the diverse needs of customers primarily in aerospace and defence as well as in the industrial and life sciences markets.

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CHALLENGE

Artemis Optical was formed in 2008, after a management buyout from Qioptiq which in turn had been spun out from the French multinational Thales in 2005.

The main challenges were to strike a deal that would not only realise the aspirations of the company’s shareholders, but one which would provide clear synergies for the business’s future development and expansion.

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OUTCOME

The solution was found just over 75 miles away. Ilminster-based Gooch & Housego is a photonics technology business with operations in the USA and Europe. A world leader in its field, the company researches, designs, engineers and manufactures advanced photonic systems, components and instrumentation for applications in the aerospace, defence, industrial, life sciences and scientific research sectors.

The company was the ideal fit both in terms of developing the business and in providing the opportunity to structure an earn out for Artemis shareholders that will also see them benefit from the amalgamated company’s growth.

The acquisition enhances G&H's product portfolio, creating new opportunities for vertical integration and the cross-selling of the companies’ combined capabilities. In turn, Artemis is able to access new customers and territories for its offering by utilising G&H’s resources, expertise and global reach.

The total consideration payable for Artemis by G&H was up to £8.9 million. This comprised an initial cash consideration of £4.5 million, funded from existing resources, together with £2.4 million of new G&H ordinary shares. There is also a deferred contingent cash consideration of up to £2.0 million, payable based upon Artemis’ performance in the two years ending 31 July 2025.