Momentum Corporate Finance LLP (“Momentum”) is delighted to announce its latest transaction, having advised AB Dynamics plc (LSE: ABDP), a leading global provider of automotive test and verification solutions, on its acquisition of Bolab Systems GmbH (“Bolab”), a niche automotive power electronics testing products business. This is the second cross-border transaction we have advised AB Dynamics on this year, following the acquisition of US-based Venshure Test Services LLC in April.
AB Dynamics plc
AB Dynamics is a leading global provider of automotive test and verification solutions that facilitate the development of vehicles that are safer, more efficient, and more sustainable.
With over 40 years of experience and a global network of partners, its solutions cover a wide range of testing and development requirements, in areas such as durability, steering, suspension, active safety, and autonomous driving. Its clients include the top 25 global vehicle manufacturers, Euro NCAP laboratories and numerous government test authorities.
Acquisition of Bolab Systems GmbH
Founded in 2012 and based near Stuttgart, Germany, Bolab supplies low-voltage and high-voltage equipment for testing automotive sub-systems and components for conventional, hybrid and electric vehicles.
The acquisition supports the expansion of AB Dynamics’ capabilities in the Testing Products business and provides further alignment with the structural growth drivers in the sector.
The maximum consideration payable for Bolab is €11.0m (£9.3m), comprising an initial cash consideration of €5.0m (£4.2m) and contingent consideration of up to €6.0m (£5.1m). The acquisition has been completed on a cash-free, debt-free basis with the initial cash consideration funded from the AB Dynamics’ existing cash resources. Contingent consideration of up to €6.0m (£5.1m) will be payable in cash across two tranches for the two years following completion, subject to meeting certain performance criteria for each year.
Bolab is being acquired from its founder, who will remain in the business.