OMAHA, Neb.--(BUSINESS WIRE)--Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, announced today that it has entered into a definitive agreement to acquire Elecsys Corporation (NASDAQ: ESYS), a provider of machine-to-machine (M2M) technology solutions and custom electronic systems. Elecsys products and services include remote monitoring and wireless communication technologies to connect industrial equipment in harsh and remote environments, integrating field data with enterprise applications and the emerging industrial Internet of Things (IoT). Headquartered in Olathe, KS, and with 135 employees, Elecsys Corporation reported annual revenue of $30.4 million in its latest fiscal year ended April 30, 2014.
Under the terms of the agreement, Lindsay will acquire Elecsys for $17.50 per share in cash, for a total purchase price of approximately $70.5 million, which includes the cashing out of Elecsys’ equity compensation awards. The agreement has been unanimously approved by both the Lindsay and Elecsys boards of directors. Upon closing of the transaction, Elecsys will become a wholly owned subsidiary of Lindsay Corporation and will continue to be operated by the company’s current management team. The parties are targeting a January 2015 closing, subject to customary conditions, including receipt of Elecsys shareholder approval. While Lindsay has sufficient cash on hand to consummate this acquisition, Lindsay expects to take advantage of attractive debt market interest rates in support of this acquisition as it continues to execute on its capital allocation plan.
“Lindsay is excited to announce the acquisition of Elecsys,” stated Rick Parod, Lindsay’s president and chief executive officer. “This represents a key strategic addition to Lindsay Corporation’s extensive competencies and is important to our long term strategy of leading the market in advanced technologies for managing water use efficiency. The Elecsys team has done an excellent job of developing proprietary M2M solutions that are field proven with a strong customer base in water, energy production, agriculture, and transportation. We expect the acquisition to be accretive in the first year.”
About Lindsay Corporation
Lindsay manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products under the Lindsay Transportation Solutions trade name. At October 10, 2014 Lindsay had approximately 12.2 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see the Company’s Web site at www.lindsay.com.
About Elecsys Corporation
Elecsys Corporation provides innovative machine to machine (M2M) communication technology solutions, data acquisition and management systems, and custom electronic equipment for critical industrial applications worldwide. The Company's primary markets include energy production and distribution, agriculture, water management, transportation, and safety systems. Elecsys products and services encompass remote monitoring, industrial data communication, mobile data acquisition, and wireless communication technologies that are deployed wherever high quality and reliability are essential. Elecsys develops, manufactures, and supports proprietary M2M technology and products for multiple markets under several premium brand names. In addition to its proprietary products, Elecsys designs and manufactures rugged and reliable custom solutions for multiple original equipment manufacturers in a variety of industries. For more information regarding Elecsys Corporation, see the company’s web site at www.elecsyscorp.com.
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” "expect," "outlook," "could," "may," "should," “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.