Oxford Instruments to sell quantum business NanoScience for £60m
Why we think this is good
The sale of Oxford Instruments' quantum business, NanoScience, for £60m in cash is a positive outcome for shareholders. The business was profitable, generating £59m in revenue and £1m in adjusted operating profit in FY25. The sale price appears reasonable compared to the financial performance, and the Group plans to return up to £50m to shareholders via a share buyback, further enhancing shareholder value.
Key Points
- Oxford Instruments to sell quantum business NanoScience for £60m cash consideration
- NanoScience generated £59m revenue and £1m adjusted operating profit in FY25
- Divestment will allow Oxford Instruments to focus on its remaining businesses
- Group plans to return up to £50m to shareholders via share buyback
Summary
Oxford Instruments plc has entered into a binding agreement to sell its quantum-focused business Oxford Instruments NanoScience ("NanoScience") to Quantum Design, International Inc. for a £60m total cash consideration, including up to £3m of deferred consideration linked to future revenues from quantum scaling systems. In FY25, NanoScience generated approximately £59m of revenue and £1m of adjusted operating profit. The divestment will enable Oxford Instruments to focus on its remaining businesses, which have growth and margin characteristics that will ensure the Group is better placed to deliver value for shareholders. Given the strength of the balance sheet, the expected cash proceeds from the sale, and in line with its capital allocation policy, the Group plans to return up to £50 million to shareholders via a share buyback, commencing shortly.