Oxford Instruments has bought out a hi-tech firm in a deal worth more than £3m.

TDI, based in the United States, produces the technology and processes which will allow Oxford Instruments based in Tubney Woods, near Abingdon to produce tools for the production of High Brightness Light Emitting Diodes.

The tools will cut manufacturing times by 25 per cent, allowing a reduction in the production costs of environmentally friendly light bulbs which are ten times more efficient than those used currently.

Oxford Instruments chief executive Jonathan Flint said: "We will be among the market leaders in this valuable and vital segment."