AB Dynamics has acquired eMpulse Test Systems, a US maker of advanced automotive test equipment, for an initial $11.0m (£8.1m) in cash.
The deal is aimed at expanding its laboratory testing business, which has recently been hit by the conflict in the Middle East, seeing sales slow.
The vehicle-testing specialist said Michigan-based eMpulse, which makes servoelectric systems used for noise, vibration, structural and durability testing, was highly complementary to its own test-systems portfolio.
The deal was funded from existing cash on a debt-free, cash-free basis, with a further $1.8m expected for working capital and up to $15.0m of contingent consideration payable over three years if performance targets are met.
AB Dynamics sees an opportunity to cross-sell eMpulse’s products to its own customers and to use its international sales network to push the US firm’s equipment into markets where it has had little direct presence. Japan is earmarked as a target.
eMpulse’s three owners will remain in the business to support its growth.
In terms of track record, eMpulse generated revenue of $5.5m in 2025, down from $9.3m the year prior, with the drop attributed to disruption caused by global tariffs.
AB Dynamics said trading had recovered strongly in the first half of this year and that it expected the deal to add to earnings from FY27, with the benefit growing as sales synergies come through.