Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion”
or the “Company”), a designer and manufacturer of precision and
specialty controlled motion products and solutions for the global
market, announced today that it has acquired Spectrum Controls,
Inc. (“Spectrum”), an innovator and manufacturer of a wide variety
of Industrial I/O and Universal Communications Gateway products.
The purchase price was $70 million, of which $45 million was paid
at closing with a combination of $27 million in cash and the
remainder in the Company’s common stock at a price of $35.82 per
share. The remaining $25 million will be paid in two equal payments
in 2022 and 2023 comprised of 50% cash and 50% stock.
“Spectrum has a long history of innovation, partnership, and
customized customer fulfillment, and we are excited to welcome the
entire Spectrum team to the Allied family. This acquisition is an
excellent strategic fit and provides us with a tremendous
opportunity to enhance our position as a value-added solutions
supplier to the industrial automation and industrial controls
market,” commented Dick Warzala, Chairman and CEO. “In addition,
Spectrum enhances our customer base, adds significant engineering
resources and has the technology and know-how to provide solutions
that meet the system requirements of Functional Safety.”
Bruce Wanta, Founder and President of Spectrum, stated, “Allied
has built an impressive organization. We believe that given their
strong leadership team and their One Allied culture, we have found
the ideal partner to successfully execute on the many strategic
initiatives and opportunities we have in front of us. We look
forward to a bright future together.”
Mr. Warzala further added, “We believe we can drive growth by
leveraging Spectrum’s strong partner relationships with large
industrial automation companies, utilizing their global
distribution channels, and benefiting from the continued digital
transformation around IIoT, AI and analytics that are driving the
increased use of smart factory floor devices.”
In 2022, Spectrum is expected to be accretive to both Allied’s
earnings per share and gross margin profile. The acquisition
structure includes a tax election that is expected to offset cash
taxes by approximately $10 million over the next 15 years.
Founded in 1983 and headquartered in Bellevue, WA, Spectrum
designs and manufactures a wide range of highly sophisticated I/O
modules, marquee displays, and industrial gateways for broad
industrial controls applications through partnerships with PLC
manufacturers and distributors. With approximately 72 employees,
Spectrum serves large industrial automation projects and specialty
applications domestically and throughout the world, including
Europe, Asia, the Americas, and the Middle East. For more
information visit https://www.spectrumcontrols.com.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells
precision and specialty controlled motion products and solutions
used in a broad range of industries within our major served
markets, which include Vehicle, Medical, Aerospace & Defense,
and Industrial. Headquartered in Amherst, NY, the Company has
global operations and sells into markets across the United States,
Canada, South America, Europe, and Asia-Pacific.
Allied Motion is focused on controlled motion applications and
is known worldwide for its expertise in electro-magnetic,
mechanical, and electronic motion technology. Its products include
brush and brushless DC motors, brushless servo and torque motors,
coreless DC motors, integrated brushless motor-drives, gear motors,
gearing, modular digital servo drives, motion controllers,
incremental and absolute optical encoders, active (electronic) and
passive (magnetic) filters for power quality and harmonic issues,
and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled
motion solutions leader in its selected target markets by
leveraging its “technology/know how” to develop integrated
precision solutions that utilize multiple Allied Motion
technologies to “change the game” and create higher value solutions
for its customers. The Company routinely posts news and other
important information on its website at www.alliedmotion.com.
Safe Harbor Statement
The statements in this news release that relate to future plans,
events or performance are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future
results, performance, or achievements. Examples of forward-looking
statements include, among others, statements the Company makes
regarding its ability to realize the potential benefits of the
Spectrum Controls acquisition and to successfully integrate its
operations; expected rates of growth and capturing market
opportunities. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they are based
only on the Company’s current beliefs, expectations and assumptions
regarding the future of the Company’s business, future plans and
strategies, projections, anticipated events and trends, the economy
and other future conditions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and many of which are outside of the Company’s control. The
Company’s actual results and financial condition may differ
materially from those indicated in the forward-looking statements.
Therefore, you should not rely on any of these forward-looking
statements. Important factors that could cause our actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, general
economic and business conditions, conditions affecting the
industries served by the Company and its subsidiaries, conditions
affecting the Company's customers and suppliers, competitor
responses to the Company's products and services, the overall
market acceptance of such products and services, the pace of
bookings relative to shipments, the ability to expand into new
markets and geographic regions, the success in acquiring new
business, the impact of changes in income tax rates or policies,
the severity, magnitude and duration of the COVID-19 pandemic,
including impacts of the pandemic and of businesses’ and
governments’ responses to the pandemic on our operations and
personnel, and on commercial activity and demand across our and our
customers’ businesses, and on global supply chains; our inability
to predict the extent to which the COVID-19 pandemic and related
impacts will continue to adversely impact our business operations,
financial performance, results of operations, financial position,
the prices of our securities and the achievement of our strategic
objectives and other factors disclosed in the Company's periodic
reports filed with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it is
made. New risks and uncertainties arise over time, and it is not
possible for us to predict the occurrence of those matters or the
manner in which they may affect us. The Company has no obligation
or intent to release publicly any revisions to any forward looking
statements, whether as a result of new information, future events,
or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211230005292/en/
Investor Contact: Deborah K. Pawlowski Kei Advisors LLC
Phone: 716-843-3908 Email:
dpawlowski@keiadvisors.com
Allied Motion Technologies (NASDAQ:AMOT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Allied Motion Technologies (NASDAQ:AMOT)
Historical Stock Chart
From Apr 2023 to Apr 2024