OSI Systems (NASDAQ:OSIS) announced that its Security division has been awarded a contract worth $7M from a major European Union international airport to provide multiple Rapiscan RTT 110 (Real Time Tomography) Systems.
“We are excited to be selected by this customer to provide RTTs,” said Deepak Chopra, OSI’s Chairman and CEO. “Our RTT checked baggage solution is based on advanced technology that enables higher throughput while achieving ECAC’s (Europe’s aviation authority) latest detection standards.”
OSI Systems (OSIS +0.65%) announced that its security division, Rapiscan, has been awarded a contract of ~$8M for multiple units of Rapiscan systems RTT 110 explosive detection system from a major international airport.
RTT has passed the ECAC's HBS EDS Standard 3 threat detection requirement and has been deployed by airports and air logistics providers.
The price works out to $37 per share in cash vs. a close of $32.34 for ASEI last night. Closing is expected sometime during the December quarter. OSIS CEO Deepak Chopra: "The acquisition of AS&E will be the most significant security acquisition in our Company’s history and we believe represents an excellent strategic fit consistent with our expansion strategy."
Annual pretax synergies of at least $18M are expected within the first two years post-closing. The deal is expected to be accretive to non-GAAP EPS in fiscal 2017, and at least 10% accretive to FY 2018 GAAP EPS.