Bellevue-based Spectrum Controls, which makes input-output (I/O) products, has been acquired by Allied Motion Technologies Inc. (Nasdaq: AMOT).
Allied Motion, a motor company headquartered near Buffalo, New York, is paying $70 million total for Spectrum, including a $45 million upfront payment of $27 million cash and the remainder in stock. The remaining $25 million will be split into two equal payments this year and next year, each consisting of half cash and half stock.
"This acquisition is an excellent strategic fit and provides us with a tremendous opportunity to enhance our position as a value-added solutions supplier to the industrial automation and industrial controls market,” Dick Warzala, chairman and CEO of Allied Motion, said in a news release. “In addition, Spectrum enhances our customer base, adds significant engineering resources and has the technology and know-how to provide solutions that meet the system requirements of functional safety.”
Spectrum, founded in 1983, has about 72 employees, according to the release. An Allied Motion spokesperson said the Spectrum employees are joining Allied Motion.
Spectrum offers dozens of different I/O models and has clients in Europe, Asia, the Americas and the Middle East.
Allied Motion was incorporated as a public company in 1962. In addition to motors, Allied Motion makes steering wheel sensors and traction wheel drives. Its products are designed for vehicles, aerospace, defense and agriculture, among others. The company operates in Canada, Mexico, Europe and Asia, in addition to the U.S.
According to its third quarter 2021 earnings, released in November, Allied Motion generated $103.5 million in revenue for the quarter, up from $94.7 million during the third quarter of 2020.
“Allied has built an impressive organization," Bruce Wanta, founder and president of Spectrum, said in a news release. "We have found the ideal partner to successfully execute on the many strategic initiatives and opportunities we have in front of us. We look forward to a bright future together.”
