MTS Systems sees £23m ($30m) in incremental revenue from E2M acquisition.

MTS Systems Corporation announced that it closed on the acquisition of E2M Technologies B.V. E2M is expected to contribute nearly $30M in incremental revenues in fiscal 2019 and double-digit growth thereafter. The acquisition is expected to be neutral to earnings in year one exclusive of transaction costs and is expected to provide immediate accretion to gross margins. MTS funded the approximate £62m ($80m) purchase price for this acquisition using primarily its revolving credit facility. E2M is a leader in high-quality, durable, electrically-driven motion systems, serving primarily the human-rated entertainment and training simulation markets. The newly acquired business will be reported as part of the MTS Test segment, which will be renamed "Test and Simulation" to reflect the growth in simulation applications across all MTS market sectors. Once integrated into the MTS Test and Simulation segment, E2M, with its exceptional electric force simulation and motion technical expertise, will leverage MTS' global sales and service network to support continued exciting growth within its core markets of entertainment, certified flight and general motion simulation.