Paul Caragher

Private equity firm Evergreen Pacific Partners has taken a majority stake in two Eastside companies in the optical software and light-testing industries and merged them into one company.

The capital from Evergreen is allowing Redmond-based Radiant Imaging Inc. to merge with Zemax Development Corp. of Bellevue, creating a company with 50 employees.

The merger and investment will allow the new, single company to grow and expand into new markets, including Asia. The companies are retaining their entire workforces, and will be hiring, said T.J. McGill, Evergreen’s co-founder and managing partner.

“This isn’t a merger for cost synergies,” McGill said. “This is a growth story.”

McGill said the parties were not disclosing the amount of Evergreen’s investment, but the Seattle-based private equity firm becomes majority owner of the new company. Evergreen typically invests in companies that have more than $50 million in revenue.

T.J. McGill

Paul Caragher is now CEO of the combined companies. Caragher previously was president of Fluke Networks and Tektronix Service Solutions.

Zemax, founded in 1988, develops software that helps optical engineers create optical systems, including lenses, cameras, scopes and instruments. Radiant, founded in 1992, runs a test and measurement business for measuring brightness and color in the production of flat panel screens, laptops, phones, stadium displays and LED devices.

The merger comes at a time when the lighting market is undergoing a shift to more energy efficient LED lights. Meanwhile, devices such as tablets and smartphones are creating more demand for the next generation of display devices and LED lighting.

CEO Caragher said, with the merger, the new, larger company will have the resources to take advantage of the demands in the marketplace.

Zemax will be moving from Bellevue into Radiant’s facility. The two companies will continue to operate under separate brands.

Ron Rykowski, founder of Radiant, and Zemax founder Ken Moore are remaining with the new company. They both retain minority ownership. Caragher also becomes a minority owner.