inTEST Corporation (AMEX: INTT) disclosed that it has purchased considerably all of the assets of Videology Imaging Solutions Inc. and Videology Imaging Solutions Europe B.V. It is collectively called Videology. inTEST purchased the assets of Videology for a total payment of $12 million in cash.
The trailing-twelve-month revenue of Videology as of the end of September 2021 was nearly $10 million and delivered comparable gross margins with inTEST. The firm anticipated the purchase to be roughly $0.05 profitable to diluted earnings per share in its first year with inTEST, net of one-time acquisition-related expenses. inTEST anticipates purchase-related expenses to be roughly $0.03 per diluted share in the fourth quarter of 2021.
Furthermore, the Videology acquisition is in line with a number of its strategic initiatives. Through this transaction, the firm will expand its process technology solutions, expand its reach into key targeted markets and widen its customer base. It established its process technology platforms by increasing its automation capabilities to add future product solutions with imaging data and analytical tools.
Additionally, INTT disclosed that with the combination of Z-Sciences and Videology, the firm is further expanding its markets and increasing its customer base. While the firm used its new credit facility to finance this transaction, the firm has the financial flexibility and resources to continue to carry out a vigorous pipeline of acquisition opportunities.