General Scanning, Lumonics Close Merger Deal

In separate votes, shareholders of General Scanning Inc. (Watertown, MA) and Lumonics Inc. (Kanata, ON, Canada) approved the merger of the two companies into a single entity named GSI Lumonics Inc. (see General Scanning and Lumonics to Merge). The new company will serve the semiconductor, electronics, medical, automotive, aerospace, and consumer packaging markets.

According to General Scanning president and CEO Charles Winston and Lumonics president and CEO Warren Nix, the two companies have a blueprint in place for the integration of the two companies, as well as an aggressive 12-month timetable to restructure for cost savings. "Most important," said Winston, "we will be open and ready for business as GSI Lumonics as soon as the transaction closes." Regulatory approvals have already been obtained, and the merger is expected to close the week of March 22, 1999.

Under terms of the merger, shareholders of General Scanning will now exchange each GSI share owned for 1.347 shares of Lumonics. This will allow GSI shareholders and Lumonics' shareholders as groups to own approximately 50% each of the combined company, GSI Lumonics. Lumonics shareholders do not need to tender their shares. GSI Lumonics will be listed on both the NASDAQ and Toronto Stock Exchanges, conform to US Generally Accepted Accounting Principles, report financial results in US dollars and retain its eligibility as Canadian content for RRSPs.