OMAX announces settlement in patent litigation
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," said 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," said Dr. Cheung.
OMAX has also announced the establishment of MAXIEM™, a new division and brand within the company. With full technical details forthcoming, MAXIEM machines will debut during the summer of 2009.
"Having penetrated markets in over 40 countries, we have identified a significant global need for a basic line of waterjet machines," said 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."