MTS Completes Acquisition Of E2M Technologies B.V.
- Significantly expands MTS Test and Simulation technology and product offerings for human-rated simulation systems
- Brings key regulatory approvals and customers in high-growth flight simulation and entertainment markets
- Provides compelling financial profile to enhance MTS revenue growth, margins, earnings and free cash generation
E2M is a leader in high-quality, durable, electrically-driven motion systems, serving primarily the human-rated entertainment and training simulation markets. Key product applications include high-technology motion simulators for the amusement park industry and flight simulators for certified pilot training, both of which offer substantial growth opportunities for the future.
E2M has utilized its unique design capabilities and outstanding force and motion technologies to systematically gain the required regulatory and customer quality approvals for demanding human-rated motion systems, including motion platforms for "Level D" flight simulators for pilot training, and for key customers in the burgeoning theme park and vehicle simulator industries. Due to the exceptional value, quality and reliability of its motion platforms, E2M has developed a premium customer base and is poised to substantially exceed market growth rates.
The newly acquired business will be reported as part of the MTS Test segment, which will be renamed "Test and Simulation" to reflect the growth in simulation applications across all MTS market sectors. Once integrated into the MTS Test and Simulation segment, E2M, with its exceptional electric force simulation and motion technical expertise, will leverage MTS' global sales and service network to support continued exciting growth within its core markets of entertainment, certified flight and general motion simulation. From a technology standpoint, E2M's electric actuation expertise will accelerate the development of electric force simulation and motion solutions in the MTS Test and Simulation's core markets of material, aerospace, civil infrastructure and automotive testing and simulation. In addition to gaining access to exciting adjacent simulation markets and advancing key electric motion technologies, MTS also gains an expanded local engineering and manufacturing base in its European market and a proven leadership team in E2M.
E2M is expected to contribute nearly
"We are very excited about adding E2M Technologies to our company, as we accelerate our growth in electric motion and simulation technologies and broaden our market exposure. E2M motion systems offer unprecedented replication of real-world environments in human-capable systems, providing a safe, effective, and highly efficient way to train pilots, as well as locomotive, ship and mass transit operators, and even vehicle drivers for new ground vehicle systems. These markets, along with the rapid expansion in number, scale and sophistication of amusement parks globally, provide outstanding growth opportunities for our company. We also place a strong emphasis on the talent and demonstrated capabilities of the acquired company's management team. E2M's strong technology position and track record for outstanding growth and profitability with extremely demanding customers world-wide is a testament to their leadership and the entrepreneurial spirit of the organization. With this cultural match to MTS, we are confident that the financial return of this investment will not only be met, but greatly surpassed in the future," stated Dr.
"MTS' renowned engineering expertise, exceptional brand, and global footprint, when combined with E2M's superb electric motion technology and strong adjacent market positions, offer exceptional growth opportunities for the combined entity. MTS' broad array of products and technologies and global sales and service enables E2M to provide its customers better service and support, and we are excited to work together," stated
As announced on
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This release contains "forward-looking statements" made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties, as well as assumptions, that could cause actual results to differ materially from historical results and those presently anticipated or projected. Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions identify forward-looking statements in this release. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions, statements about the expected impact of the acquisition of E2M and the opportunities and outlook for the Sensors and Test and Simulation segments, and other statements that are not historical facts. These statements are based on MTS' current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Risks, uncertainties and assumptions that could cause MTS' actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those described in the "Risk Factors" section of MTS' most recent Annual Report on Form 10-K filed with the
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