Benzinga | Dec 9, 2021 09:58PM EST

InTest Shares Move Higher; Co Says To Acquire Acculogic; Terms Not Disclosed

inTEST Corporation (NYSE:INTT), a global supplier of innovative test and process solutionsfor the automotive, defense/aerospace, industrial, life science, semiconductor and telecommunications markets, announced today that it has entered into a definitive agreement to acquire Acculogic Inc. ("Acculogic") and its affiliates, a global manufacturer of robotics-based electronic production test equipment and application support services, for approximately USD$9 million.The purchase price is expected to be funded with borrowings under the Company's existing delayed draw term credit facility. The transaction is expected to close within the next 30 days, subject to the satisfaction of customary closing conditions.

"Acculogic is a natural fit for inTEST and aligns with our 5-Point Growth Strategy. This acquisition will add electronics test capabilities with new technologies and services as well as broaden our customer base, further our end market diversification and expand our international footprint," commented Nick Grant, inTEST President & CEO. "Acculogic provides differentiated flying probe know-how and solutions to the circuit test markets. Of note, it has gained an early position in electric vehicle battery testing applications, which would expand inTEST's portfolio of solutions for electric vehicle OEMs. With the planned acquisition of Acculogic, we are creating an electronic test platform that goes beyond the semiconductor market with deeper penetration in defense, aerospace and life science markets."

He added, "Our goal is to grow the business at a greater rate than the market by expanding its global reach and enhancing its product portfolio."

With the acquisition, inTEST will be adding approximately USD$9 million in annual revenue. The Company expects incremental acquisition-related expenses to be approximately $0.05 per diluted share of which approximately $0.02 are expected in the fourth quarter of 2021 regardless of the timing of closing. In addition, the Company intends to invest in growth in the first half of 2022 as Acculogic operations are integrated. In 2022, net of transaction costs and anticipated investments, Acculogic is expected to be approximately $0.02 accretive to diluted earnings per share.

Founded in 1992 and headquartered in Markham, Ontario, Canada, Acculogic designs and manufactures a broad range of systems and instruments for testing electronic devices, circuit boards and systems used to validate designs, ensure the integrity of prototypes, improve production processes and yields, and deliver defect-free final products. Acculogic also has engineering and sales support facilities in Maple Grove, MN, Lake Forest, CA, and Hamburg, Germany. Acculogic has approximately 50 employees and generates approximately 75% of its revenue in the defense/aerospace, automotive and life science markets.

Acculogic's test products include the Flying Scorpion, the world's first patented double sided Flying Probe with 3-D joy-stick-like probe motion and 22 interchangeable probe modules, an extensive line of in-circuit test systems, a suite of boundary scan test and programming tools, and application specific functional test systems. According to a leading market research firm, the flying probe and integrated circuit test market in which Acculogic competes is estimated to be about $200 million with a mid-single digit compounded annual growth rate.