Elecsys Corporation, a provider of innovative machine to machine (M2M) communication technology solutions, data acquisition systems, and custom electronic equipment for critical industrial applications, announced today that it has entered into a definitive agreement to be acquired by Lindsay Corporation, headquartered in Omaha, Nebraska.
A leading provider of mechanized irrigation equipment, water management systems, and infrastructure products for the highway safety and railroad markets, Lindsay operates manufacturing facilities in six countries and employs over 1,200 people worldwide. Lindsay Corporation reported annual revenue of $618 million in its latest fiscal year ended August 31, 2014.
Under the terms of the agreement, Lindsay will acquire Elecsys for $17.50 per share in cash, for a total purchase price of approximately $70.5 million. The agreement has been unanimously approved by both the Elecsys and Lindsay boards of directors. Upon closing of the transaction, Elecsys will become a wholly owned subsidiary of Lindsay Corporation. The parties are targeting a January 2015 closing, subject to customary conditions, including receipt of Elecsys shareholder approval. In conjunction with the signing of this definitive agreement, Elecsys has suspended the stock repurchase program it announced in December 2012.
“We believe this transaction marks the beginning of an exciting new chapter for Elecsys, our employees, our customers, and the industries we serve, while providing immediate value to our stockholders at a premium to our share price,” said Karl Gemperli, President and Chief Executive Officer of Elecsys. “The opportunity to be acquired by Lindsay presents a unique strategic opportunity to combine our industry leading M2M technology with Lindsay’s expansive global footprint and market presence to expand our solutions into additional industries and markets around the world.”
“Lindsay is excited to announce the acquisition of Elecsys,” commented Rick Parod, Lindsay’s President and Chief Executive Officer.
“This represents a key strategic addition to Lindsay Corporation’s extensive competencies and is important to our long term strategy of leading the market in advanced technologies for managing water use efficiency.”
“The Elecsys team has done an excellent job of developing proprietary M2M solutions that are field proven with a strong customer base in water, energy production, agriculture, and transportation.”