ATS Automation Tooling Systems announced it has entered into a definitive agreement to acquire BioDot, a manufacturer of automated fluid dispensing systems for $84 million subject to customary post-closing adjustments. The transaction is expected to close in the second calendar quarter of 2021, pending the completion of customary regulatory filings. ATS plans to fund the acquisition by drawing on its revolving credit facility.
"The addition of BioDot expands our life sciences capabilities in precise, low volume fluid dispensing and enhances our position in the point-of-care and clinical diagnostics lab automation end-markets," said Andrew Hider, CEO of ATS. "With a long track record, applications expertise and deep customer relationships, BioDot's systems enable customers to manufacture billions of test devices annually. Given the transition toward near-patient and at-home diagnostic testing for a broad range of infectious diseases including Covid-19, and other medical and non-medical testing applications, the acquisition of BioDot will allow us to play a bigger role in supporting the needs of our Life Sciences customers for the long term."
Founded in 1994 and based in Irvine, California, BioDot manufactures non-contact and quantitative fluid dispensing systems serving customers in point-of-care and clinical diagnostics. In 2020, BioDot generated revenues of $36 million and EBITDA of $15 million.
BioDot will continue to be led by its CEO, Tony Lemmo.
ATS expects to realize approximately $1.5 million in annual cost synergies within three years of acquisition, including supply chain savings and operational efficiencies. ATS also expects revenue synergies to generate approximately $1.0 million of additional EBITDA within three years by leveraging the combined ATS and BioDot technologies in turnkey customer solutions and joint product development.