Transcat Acquires NEXA Enterprise Asset Management For $22.5M

Transcat, Inc. TRNS has purchased Cal Opex Limited (d/b/a NEXA Enterprise Asset Management) for $22.5 million, consisting of $20.25 million in cash $2.25 million in common stock.
Additionally, there are potential earn-out payments of up to $7.5 million over the next four years based upon NEXA achieving specific annual revenue and EBITDA goals.
Privately-held Cal Opex, founded in Ireland in 2015, provides calibration optimization and other technical solutions to improve asset and reliability management programs to pharmaceutical, biotechnology, and medical device companies.
In March 2021, Cal Opex was rebranded as NEXA Enterprise Asset Management. It has 65 employees and $7.5 million in annual revenue, with ~70% in the U.S. and 30% in Ireland.
NEXA has a profitability profile with EBITDA margins in the mid-thirties and is expected to be immediately accretive to the Service segment's current profitability.
Transcat held cash in hand of $0.254 million as of June 26, 2021.
John Cummins, NEXA President and CEO, will continue to lead the business and will report directly to Transcat CEO Lee Rudow.
Price Action: TRNS shares are trading higher by 1.58% at $67.62 on the last check Tuesday.

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