Backed by capital from buyout shop Evergreen Pacific Partners, Redmond, Wash.-based Radiant Imaging Inc. has merged with Bellevue, Wash.-based Zemax Development Corp. Radiant Imaging operates a test and measurement business for measuring light and color. Its systems are used in lab and production environments for products such as flat panel displays, laptops and LED devices. Zemax provides a platform for creating optical systems, including lenses, cameras and projectors. Evergreen Pacific Partners is based in Seattle.
Evergreen Pacific Partners (“Evergreen”), Washington state’s largest private equity fund, announced it has facilitated a merger between Redmond, Wash.-based Radiant Imaging, Inc. (“Radiant”) and Bellevue, Wash.-based Zemax Development Corporation (“Zemax”). The merger, backed by capital from Evergreen, will enable both companies to better serve and grow existing markets for their products, as well as create new products to meet growing global demand in the photonics and optics industries. As part of the merger, Paul Caragher, who most recently was president of Tektronix Service Solutions, a leading test and measurement services provider, will become chief executive of the combined companies.
Radiant Imaging, Inc. is a leading test and measurement business for measuring light and color. Its systems are used in lab and production environments worldwide for products such as flat panel displays, laptops, phones, stadium screens and LED devices. Zemax Development Corporation offers engineers and designers a leading platform for creating optical systems, including lenses, cameras, projectors, scopes and instruments. Its software allows optical developers to quickly optimize designs to maximize performance while meeting cost requirements.
The lighting market is undergoing a significant shift to more energy-efficient LED lights, and devices such as tablets and smartphones are expected to proliferate in 2011 and beyond. By combining their expertise and resources, Radiant and Zemax will offer a powerful, end-to-end solution for developers designing, testing and producing the next generation of display devices and LED lighting.
“We will be able to grow faster and go farther together,” said Ron Rykowski, founder and CEO of Radiant. “With access to capital from Evergreen and economies of scale, we can develop integrated solutions that deliver increased value to customers and generate new revenue opportunities for the company.”
In the short term, the combined companies will be located in a single facility in Redmond, Washington and operate under their respective brands, while expanding customer outreach and technical support functions and beginning to integrate their technologies. Founders of both companies are remaining in executive leadership and product development roles with a goal of dramatic company expansion in the next three to five years through organic growth as well as strategic acquisitions.
“The long term potential in this industry is immense, but serving it will require a truly global company,” said Ken Moore, founder and CEO of Zemax. “This merger will allow us to transform into a global optics design, test and measurement leader with the infrastructure and capacity to serve our customers where they are — which is increasingly in Asia.”
The combined entities will be led by new CEO Paul Caragher, who recently served as president of Fluke Networks and Tektronix Service Solutions, both owned by Danaher Corporation. Caragher’s prior experience includes Hach-Lange, a manufacturer of water testing instruments and systems, and international experience working for General Motors Corporation’s Latin America, Africa, and Middle East Operations.
“This is a great opportunity to combine two companies that are individual leaders in their existing fields, but together can capitalize on the exploding demand for LED-based devices,” said T.J. McGill, co-founder and managing partner at Evergreen.
Evergreen Pacific Partners, which manages two private equity funds totaling $700 million, invests in traditional buyouts, management led buyouts, and growth equity investments involving traditional industry, middle-market companies in the Western U.S. and Canada. To date, the firm has completed 10 transactions involving companies in Washington, Arizona and California. Its investors include foundations, endowments, pension funds, and West Coast-based CEOs with experience in Evergreen’s target industries.
About Evergreen Pacific Partners
Based in Seattle, Wash., Evergreen Pacific Partners currently manages two private equity funds totaling $700 million, with a focus on investing in traditional, middle-market companies in Western North America. Evergreen Pacific was co-founded by Timothy Bernardez, T.J. McGill, and Michael Nibarger. Evergreen Pacific’s acquisitions and investments include Western Broadband (Phoenix, Ariz.), Gene Juarez Salons & Spas (Seattle, Wash.), Good Source Solutions (Carlsbad, Calif.), Haney Truck Line (Yakima, Wash.), Puget Sound Truck Lines, Inc. (Seattle, Wash.), Nickel Plate Express, Inc. (Portland, Ore.), Nuprecon (Snoqualmie, Wash.), CST Environmental (Brea, Calif.), Marcor Environmental (Baltimore, MD), Radiant Imaging, Inc. and Zemax Development Corporation.