eMpulse's test systems are used by automotive companies to evaluate vehicle and component performance, including noise, vibration and harshness, structural integrity and durability. Over many years, the company has built a strong reputation among North American OEMs and developed a rich suite of technology and intellectual property.
eMpulse's technology and products are highly complementary to the Group's existing laboratory testing portfolio, creating a broader and more capable offering for customers. The combined portfolio strengthens AB Dynamics' position in servoelectric testing technologies, which deliver performance and energy efficiency advantages over traditional hydraulic alternatives.
Together, eMpulse's proven product range and AB Dynamics' global sales and support network create new opportunities for customers around the world. We see significant potential to expand the reach of eMpulse's technologies, deepen engagement with existing customers, and give customers access to a broader range of testing products through a single trusted partner.
The initial cash consideration is $11.0m (£8.1m), which has been funded from the Group's existing cash resources. The acquisition has been completed on a cash-free, debt-free basis with the usual post-completion adjustments for working capital, which are expected to result in an additional payment of approximately $1.8m (£1.4m). Contingent consideration of up to $15.0m will be payable in cash across three tranches for the three years following completion, subject to meeting certain performance criteria.
eMpulse is being acquired from its three shareholders, all of whom are expected to remain in the business to ensure ongoing delivery of the growth expectations.
Sarah Matthews-DeMers, Chief Executive Officer, said:
I am very pleased to announce the acquisition of eMpulse and the expansion of the Group's laboratory testing product offering. eMpulse's product suite is highly complementary to the Group's existing portfolio, specifically as an adjacent product to our SPMM, both in relation to its customer base and its servoelectric technology, which provides increased performance and greater energy efficiency compared to its hydraulic alternatives.
We expect the acquisition to provide us with an excellent platform for growth and we are delighted to welcome the eMpulse team to AB Dynamics.
To learn more about eMpulse and its servoelectric testing solutions, visit www.empulsetestsystems.com