Perceptron, Inc. (NASDAQ:PRCP) Q4 2020 Earnings Conference Call - Final Transcript

Sep 28, 2020 • 08:30 am ET

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Perceptron, Inc. (NASDAQ:PRCP) Q4 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. We will now be conducting the question-and-answer session. [Operator Instructions] And our first question is from the line of Greg Palm with Craig-Hallum Capital. Please proceed with your questions.

Analyst
Greg Palm

Yeah. Thanks. I guess congrats on the announcements here. I'm not sure what all you can say at this point. I know eventually, we'll get some more details. But in terms of the transaction, can you give us a little bit more detail on maybe the background of the process? I guess really specifically what I'm interested in and I think others are, were there any interested, other interested parties in here?

Executive
Jay W. Freeland

Yeah. Hey. Good morning, Greg. So, there -- I'll start, I'll go in reverse order. There were other interested parties, which would not be a surprise, given the technology portfolio that we have. And I think, as we made transition into my interim role and Bill's, there were some parties who would look at it and said, well, perhaps there's an opportunity here for a good combination with Jay and Bill sitting in the leadership seats right now.

And so I did -- there were several parties who were interested in it, in the company. And while I'll say that they were all interested parties, for me and for the rest of the Board, Atlas made a very compelling cash offer at a significant premium. And for us, we have a great leadership position, very strong position in automated metrology and robot guidance, but we certainly needed to create some more scale for the company, right?

We were a bit of a niche player, it's a industry that's very quickly becoming managed by multiple large players and so that made it difficult for us. And I think we wanted to get access to additional end markets for sure. As we've talked before, we had this heavy reliance on automotive, and diversification was going to be a key to doing so.

And Atlas is in all of the spaces that we're currently in, as well as the ones that we were driving the business towards even as a standalone entity. And so when we looked at, we did a pretty thorough strategic view, as a Board. We put together what we thought was a compelling strategic path forward as a standalone entity, but the path offered by Atlas was more compelling.

And I think it's a really strong tie up with our technology, into their business, their recent acquisition of ISRA is a good logical connection. There's very little overlap between what the two companies do, but commonality in terms of the types of customers and where in the facilities we are selling and operating. And so the combination of all of those items made this a really good path forward and a great solution for the company longer term.

Analyst
Greg Palm

That's makes a lot of sense and, it does sound like they're kind of, building out, somewhat of a new vertical here with a couple acquisitions, regulatory approvals. I