(RTTNews) - Allied Motion Technologies Inc. (AMOT) said that it has acquired Spectrum Controls Inc., a 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.
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.
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