We publish courtesy of Diamond World
Sarin Technologies Ltd. has acquired the Light Performance Technology (‘LPT’) from Overseas Diamonds Technologies NV (“ODT”). The ODT LPT is a light performance system, enabling 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); symmetry – how symmetric is the play of light returned from the diamond. Uzi Levami, Chief Executive Officer of Sarin, said “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.”
The LPT system is projected at giving diamond retailers an attractive sales tool to simplify and enhance the consumer’s diamond jewelry buying experience. The company believes ‘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.’
Besides retailers, Sarin believes LPT would add value to its deliverables to manufacturers and wholesalers. “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.’ ‘It will 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.’
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, which the company “expects 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.’
The term of the deal between Sarin and ODT state that Sarin will pay 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. Sarin plans to launch the LPT later in 2011 after augmenting the acquired core technology to adapt it to retail markets, which is fairly a new segment for the company.