This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Allied Motion Technologies Signs Purchase Agreement To Acquire Östergrens Elmotor In Sweden

Allied Motion Technologies Inc. (NASDAQ: AMOT) announced today it has signed an agreement to acquire 100% of the stock of Östergrens Elmotor AB (Östergrens), headquartered in Solna, Sweden. The amount to be paid at closing is SEK 55 million (U.S. $8 million), consisting of approximately $7.3 million of cash and $700,000 of common stock of Allied Motion. Additional amounts may be paid in cash to the sellers based on Östergrens meeting certain performance criteria through the end of 2011. Allied Motion will fund the acquisition primarily with cash on hand, as well as utilization of the Company’s existing credit facility. The closing is scheduled for December 30, 2010.

Östergrens has extensive expertise in designing drive electronics, software and mechanical processes. The products are manufactured at Östergrens’ facilities in Sweden and China. Östergrens’ current products integrate their electronics expertise with other motion control products such as motors and gears. Their products are sold to OEM customers throughout Europe and are used in a wide variety of industrial, commercial and medical applications, including emerging “Green Technology” alternative energy and electric vehicle applications, leading edge medical instrumentation and test equipment applications and a wide variety of other industrial and commercial applications in which Östergrens’ products improve the efficiency/performance of the OEM’s products. For 2009, Östergrens had revenues of approximately U.S. $15 million, and total assets at September 30, 2010 were approximately U.S. $5.6 million. For the nine months ended September 30, 2010, Östergrens has experienced an increase in revenue to an annualized amount of approximately U.S. $17 million and improved profits compared to the same period of last year.

“The addition of Östergrens launches the next chapter in the development of our company,” commented Dick Warzala, President and CEO of Allied Motion. “This acquisition furthers our growth strategy by enabling us to expand our geographic coverage and our technical capabilities to compete more effectively in both our existing and additional new markets by approaching each application from a complete “Motion Control Solution” perspective. Östergrens will become a part of our existing Allied Motion Europe operations and will report to Harry Cloos, the current General Manager of Allied Motion Premotec. Börje Östergren, the Managing Director of Östergrens will continue in his current role and will also assist in the development of Allied Motion Solution Centers in other regions of the world.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs