National Technical Systems Inc. has acquired Ingenium Testing, a provider of product compliance and engineering services, in a deal valued at more than $12.5 million.
The Calabasas company on Thursday said that acquiring Ingenium, which is in Rockford, Ill, was a key step in its strategic growth plan to become a more diverse and comprehensive provider of testing and engineering services. The assets include 12 fully-automated test chambers that can handle products developed by its clients in the aerospace, defense, telecommunications, automotive and high technology industries. The deal also gives NTSC a stronger presence in the Midwest.
“We believe the best path toward meaningful increases in shareholder value is by executing on our plans to grow both organically and through opportunistic acquisitions,” Chief Executive William McGinnis said in a statement.
The deal, which includes earn-outs for Ingenium’s owners, was funded from a $14 million private placement of debt and equity with Mill Road Capital that closed last month.
Shares were down 8 cents, or 1.4 percent, to $5.85 in midday trading in the Nasdaq.