Astronics Acquires Mass Transit Test Solution Provider Diagnosys Test Systems
04 October 2019 - 11:15PM
Business Wire
Provides engineering scale, broader range of
solutions and strong market position in expanding mass transit
opportunity
Astronics Corporation (Nasdaq: ATRO), a leading provider of
advanced technologies for the global aerospace, defense, and other
mission critical industries, announced today that it has acquired
the primary operating subsidiaries from mass transit and defense
market test solution provider, Diagnosys Test Systems Limited
(Diagnosys). Diagnosys is a developer and manufacturer of
comprehensive automated test equipment (ATE) providing test,
support, and repair of high value electronics, electro-mechanical,
pneumatic and printed circuit boards focused on the global mass
transit and defense markets.
Astronics has acquired 100% of the equity of the three primary
operating subsidiaries of Diagnosys, which are Diagnosys Holdings,
Inc., Diagnosys Ferndown Limited and Diagnosys Electronics (I)
Private Limited for $7 million in cash. The terms of the
acquisition allow for a potential earn-out of up to an additional
$13 million over the next three years based on achievement of new
order levels of over $70 million during that period.
Peter J. Gundermann, Chairman, President, and Chief Executive
Officer commented, “Diagnosys is a leader in test solutions with a
heavy focus on mass transit and defense markets, which is very much
aligned with the strategy of our Test segment. The acquisition
gives us a strong position in the growing mass transit test market
as well as providing component-level solutions to our aerospace
& defense test business. We expect that the company’s advanced
technologies and customer base will provide us opportunities for
continued growth into mission-critical test markets by enabling us
to offer a broader range of solutions to our customers. We are
pleased to welcome the employees of Diagnosys to the Astronics
family.”
The acquired business has operations in Westford, Massachusetts
as well as Ferndown, England, and an engineering center of
excellence in Bangalore, India. Diagnosys has approximately 120
employees. Founded in 2008, the company offers complete ATE and
bench test equipment solutions for support and maintenance of high
value electronic circuit boards and modules in mission-critical
reliability sectors. Diagnosys also provides an extensive range of
service capabilities, including the overhaul and repair of
electronics systems. Sales for the trailing twelve months ended
September 30, 2019 were approximately $9.0 million.
ABOUT ASTRONICS CORPORATION
Astronics Corporation (Nasdaq: ATRO) serves the world’s
aerospace, defense, and other mission critical industries with
proven, innovative technology solutions. Astronics works
side-by-side with customers, integrating its array of power,
connectivity, lighting, structures, interiors, and test
technologies to solve complex challenges. For 50 years, Astronics
has delivered creative, customer-focused solutions with exceptional
responsiveness. Today, global airframe manufacturers, airlines,
military branches, completion centers, and Fortune 500 companies
rely on the collaborative spirit and innovation of Astronics.
For more information on Astronics and its solutions, visit
Astronics.com.
Safe Harbor Statement
This news release contains forward-looking statements as defined
by the Securities Exchange Act of 1934. One can identify these
forward-looking statements by the use of the words “expect,”
“anticipate,” “plan,” “may,” “will,” “estimate” or other similar
expressions. Because such statements apply to future events, they
are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
statements. Important factors that could cause actual results to
differ materially from what may be stated here include the ability
of the Company to advance its Test business into a broader market,
and margins to expand with growth, the success of the Company
achieving its sales expectations, the state of the aerospace and
defense industries, the market acceptance of newly developed
products, internal production capabilities, the timing of orders
received, the status of customer certification processes and
delivery schedules, the demand for and market acceptance of new or
existing aircraft which contain the Company’s products, the need
for new and advanced test and simulation equipment, customer
preferences and other factors which are described in filings by
Astronics with the Securities and Exchange Commission. The Company
assumes no obligation to update forward-looking information in this
news release whether to reflect changed assumptions, the occurrence
of unanticipated events or changes in future operating results,
financial conditions or prospects, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191004005278/en/
Company Contact David C.
Burney Chief Financial Officer, Astronics Corporation
david.burney@astronics.com +1.716.805.1599
Investor Relations Deborah
K. Pawlowski Investor Relations, Kei Advisors
dpawlowski@keiadvisors.com +1.716.843.3908
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