- Will provide retailers with an aid to enhance the consumer’s diamond jewelry buying experience
- Will enhance the manufacturer’s options and enable planning and manufacturing to maximize polished diamonds’ appeal
- Will bolster Sarin’s brand recognition in additional segments of the diamond industry - the retail and consumer end of the pipeline
- Will provide Sarin with a future source of recurring service income
Kfar Saba, Israel, 02 December 2010 – Singapore Exchange Mainboard-listed Sarin Technologies Ltd (“Sarin”) (U77:SI), a worldwide leader in the development, manufacturing and sale of precision technology products for the planning, processing, evaluation and measurement of diamonds and gems, is pleased to announce that it has acquired the Light Performance Technology (“LPT”) from Overseas Diamonds Technologies NV (“ODT”).
The ODT LPT is a proven light performance system previously in use with several hundred retailers in the United States and the Far East. The system enables the automatic, independent and accurate measurement of a polished diamond’s appearance by assessing its light performance characteristics –
- brilliance - how much light is reflected back through its crown;
- fire - how much light is broken into colored splashes;
- scintillation / sparkle - how pronounced the diamond sparkles; and
- symmetry - how symmetric is the play of light returned from the diamond.
The LPT system will enable Sarin to provide diamond retailers with an attractive sales tool that will simplify and enhance the consumer’s diamond jewelry buying experience. Buying a diamond is often an emotional experience and the final selection is typically based on how radiant the stone is, as that is what creates the initial impression on the buyer – if the stone outshines other stones (“smiles” to quote an experienced diamond dealer) that is sometimes the deciding factor. With our new LPT the retailer will more easily connect with the individual customer utilising a striking visual means designed to view, compare and evaluate the diamonds being considered, and thus offer each buyer a diamond that will best suit his or her taste and budget (visit http://www.wikihow.com/Buy-a-Diamond-Based-on-Light-Performance for additional reference to this topic).
Similarly, with the integration of the LPT with Sarin’s extensive installed base of planning systems, Sarin will be able to further contribute to the industry players’ profitability and sophistication. We expect Sarin to be in a unique position of being able to provide manufacturers and wholesale traders with both an advanced light performance measurement device and relevant planning and polishing instructions. Thus, Sarin will be a key source for technology to enable industry players to better plan, manufacture and trade in diamonds in accordance with light performance criteria - more and more being accepted, in addition to the traditional 4 C’s (Carat, Color, Clarity and Cut), as means to appreciate a polished diamond’s appeal.
Upon completion of the diamond’s polishing, Sarin’s LPT will also provide the manufacturer and/or wholesale trader with a verification report on its light performance parameters. This should broaden the Group’s offerings of services to the industry and we expect this verification report service to contribute as an additional future source of recurring service income for the Group, especially as more and smaller-sized diamonds are evaluated and documented primarily for their light performance.
Under the terms of the transaction, Sarin will pay ODT US$650,000 in cash, with additional contingent consideration due in the form of royalties for a period up to 14 years, derived on a sliding scale from the actual future net revenues. The price and terms of the transaction were arrived at on a willing buyer and willing seller basis after extensively negotiating down the price proposed by the seller based on a valuation report commissioned by the seller from a Belgian risk control and finance management company in July 2009.
Sarin expects to launch this new product line later in 2011 after augmenting the acquired core technology in order to enhance its suitability for its targeted retail markets, a new industry segment in which Sarin has heretofore been less present.
Uzi Levami, Chief Executive Officer of Sarin commented, “During the purchasing interaction, consumers are seeking more readily understood information regarding the offered polished diamonds’ beauty and value. Sarin will now be able to provide the means for the retailer, whether in the store or online, to address this need. LPT will provide an enhanced truly 21st-century buying experience by providing visualisation of a diamonds appearance under varying light conditions. In addition, Sarin will supply tools and services to the entire industry pipeline, from manufacturer through trader to jeweller and retailer so as to better manufacture and market their polished diamonds with an emphasis on readily viewable and understandable information.”
Mr. Levami added, “This acquisition is part of the Group’s strategy to expand into additional segments of the diamond industry, and we expect this acquisition to bolster Sarin’s brand recognition in the retail and consumer end of the pipeline. We believe that the current underlying consumer market trends offer significant opportunities, and we are planning additional steps to further penetrate this market and take advantage of them”.
About Sarin Technologies:
Established in 1988, Sarin Technologies Ltd. is a worldwide leader in the development and manufacturing of advanced planning, evaluation and measurement systems for diamond and gemstone production. Sarin products include diamond cut and color grading tools, the Galaxy™ 1000 and Solaris™ 100 inclusion mapping systems, rough diamond optimisation systems, laser cutting and shaping systems and laser-marking and inscription machines. Sarin systems have become an essential gemology tool in every properly equipped gem lab, diamond appraisal business and manufacturing plant, and are today considered essential items by both diamond dealers and retailers. For more information about Sarin and its products and services, visit http://www.sarin.com.