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Sale of Holotek set

Holotek Ltd., a Rochester manufacturer of customized laser-imaging systems, is being acquired by ECRM Inc., the company announced today. The deal is expected to close in July.
“It’s a seminal event for Holotek,” President Roger O’Brien said.
“We have recognized the need for a large strategic partner for several years,” he said.

Sale of Holotek set

Holotek Ltd., a Rochester manufacturer of customized laser-imaging systems, is being acquired by ECRM Inc., the company announced today. The deal is expected to close in July.
“It’s a seminal event for Holotek,” President Roger O’Brien said.
“We have recognized the need for a large strategic partner for several years,” he said. “ECRM has a solid financial track record and is perhaps the best-performing company in their industry.”
Based in Tewksbury, Mass., ECRM manufactures imaging equipment for the printing and publishing industries. Revenues for the privately held firm are in the $100 million range.
The deal gives Holotek’s 120 shareholders liquidity, O’Brien said. He declined to disclose details of the pending cash transaction.
ECRM, a customer of Holotek’s since January, was primarily interested in the smaller firm’s technology and customer base, O’Brien said.
Holotek now holds 14 patents on its technology. The firm makes customized laser-imaging subsystems that OEM customers–including 3M Co., Graphic Enterprises Inc. and Orbotech Ltd. in Israel–use in their larger products, which are then sold to end users.
Markets include graphic arts, optical inspection, xerographic printing and plotting, and computer-to-plate printing.
ECRM approached Holotek in April about the possibility of an acquisition, O’Brien said. Holotek has held similar talks with several other companies over the past few years, he said, but ECRM was clearly the best fit.
Merging with a larger company allows Holotek to tap working capital for further product development, O’Brien said. ECRM’s sales force also gives Holotek direct access to its markets, he said.
And with the backing of ECRM, Holotek can be choosier about the projects it takes on, O’Brien said, rather than jumping on any job just to meet payroll.
Holotek’s revenues fall in the $2 million range. It did not mark a profit last year.
Holotek will remain in Rochester. Both O’Brien and Charles Kramer, the Holotek’s founder and chief technologist, have agreed to stay with the firm.
Holotek employs 20 workers at its 11,250-square-foot facility in the Summit Point Industrial Park in Henrietta.
ECRM’s Web site is http://www.monster.com/companies/ECRM.html.

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