OMAX Announces Settlement in Patent Litigation
Announcement accompanied by abandonment of proposed merger with Flow Corporation
Kent, Washington, May 13, 2009 - OMAX has announced the settlement of the outstanding patent litigation with Flow Corporation, along with the cessation of merger negotiations with the company.
"Due to the risks and difficulties of obtaining financing inherent in today's capital markets, Flow elected to abandon the proposed merger between our companies," says Dr. John Cheung, CEO of OMAX. "While we still believe the merger could have provided significant benefits for both companies, OMAX was unwilling to further modify the terms of the merger agreement. OMAX is emerging from this process with a very strong financial position."
In consideration for Flow's termination of the merger and the patent settlement, OMAX will receive $25 million in cash and $10 million in notes maturing in four years. A cross-licensing agreement has been reached for the patents involved in the litigation.
"No commercialized technology was exchanged between OMAX and Flow, so we will retain complete ownership of the innovations that have made our company an industry leader," says Dr. Cheung. "The technologies exclusively available in OMAX waterjets include Intelli-MAX® control software, direct drive pump technology and Intelli-TRAX(TM), the world's first drive system designed exclusively for waterjet machining centers."
OMAX has also announced the establishment of MAXIEM(TM), a new division and brand within the company. With full technical details forthcoming, MAXIEM machines will debut during the summer of 2009 and offer the unparalleled flexibility and productivity of waterjet machining at a highly affordable price point.
"Having penetrated markets in over 40 countries, we have identified a significant global need for a basic line of waterjet machines," says Dr. John Olsen, co-founder and Vice President of Operations at OMAX. "Through extensive R&D, we developed the MAXIEM line of machines to provide proven technologies in a highly productive, cost-efficient package."
About OMAX
Headquartered in Kent, Washington, OMAX Corporation is the leading manufacturer of precision abrasive waterjet systems. Each OMAX JetMachining® system is powered by the company's innovative control software, bringing affordable abrasivejet technology to an expanding and diverse group of industries. For more information on OMAX products and accessories, contact Sandra McLain at 800.838.0343 or visit www.omax.com.
Sandra McLain,
OMAX Marketing
Phone: (800) 838-0343
Email: sandra.mclain@omax.com
