ATS To Buy Avidity Science For $195 Mln

(RTTNews) - ATS Corp (ATS), an automation solutions provider, announced on Friday that it has entered into a definitive agreement to acquire Avidity Science, LLC manufacturer of automated water purification solutions for $195 million.

"ATS works to support our customers in all areas of life sciences from research, to drug discovery, right through to commercial production," said Andrew Hider, Chief Executive Officer of ATS.

With this acquisition, the company is expecting $1.5 million of cost and commercial synergies by the third year and $2.6 million in the fifth year. It plans to fund the purchase with cash and by drawing on its revolving credit facility.

Avidity had generated revenues of $81.9 million and had an adjusted EBITDA margin of 20.4 percent in the fiscal 2022. According to the company, 40 percent of the revenue of Avidity is recurring in nature and includes the sale of consumables, SaaS, and aftermarket service and support.

The transaction is expected to close in the fourth quarter.

On Thursday, shares of ATS closed at $42.72 down 3.15% on the New York Stock Exchange.