Listed tech products provider Oxford Instruments has entered into a binding agreement to sell its quantum-focused business, Oxford Instruments NanoScience, for £60m.
The deal with California-based Quantum Design, International Inc. is expected to be completed in the third quarter of the 2025/26 financial year and will enable the firm to focus on its remaining businesses.
This will, Oxford Instruments says, allow the firm to be better placed to deliver value for shareholders.
However, the announcement of the deal caused a drastic decrease in the firm’s share price.
It plummeted from 1,950p at 8am on Tuesday 10th June to 1,804p just 15 minutes later.
It has somewhat recovered and stood at 1,906p as of 3pm, with the company having a market cap of £1.11bn.
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In FY25, NanoScience returned to profitability, generating approximately £59m of revenue and £1m of adjusted operating profit.
The group plans to return up to £50m to shareholders via a share buyback, which will commence shortly.
The company on the other end of the deal, Quantum Design, offers a range of products and services for scientific, academic and industrial research.
“I am excited to accelerate Quantum Design and NanoScience business units into the future with the extensive synergistic capabilities of these two great leaders in cryogenic measurement and instrumentation,” said Stuart Schoenmann, CEO of Quantum Design.
“NanoScience’s historic Tubney Woods factory will expand our global manufacturing footprint with significant facilities that were the birthplace of superconducting magnet technologies.”
Richard Tyson, CEO of Oxford Instruments, added: “The sale of our NanoScience quantum business is in line with our strategy to focus and invest in the best areas of opportunity to grow the group and create value for shareholders, and supports progress towards our medium-term margin targets.
“It is also consistent with our focus on our three core markets: materials analysis, semiconductor, and healthcare and life science.
“Quantum Design’s desire to lead the business through the next stage of its development and investment journey is a testament to NanoScience’s talented team and excellent technology.”