OLATHE, KS -- Lindsay Corp. will acquire EMS/OEM firm Elecsys in a cash deal worth about $70.5 million, the companies said today.  

Omaha, NA-based Lindsay is an OEM of mechanized irrigation equipment, water management systems, and infrastructure products for the highway safety and railroad markets. It employs over 1,200 workers and had annual revenue of $618 million in its fiscal year ended Aug. 31.

Under the terms of the agreement, Lindsay will acquire Elecsys  for $17.50 per share in cash. The deal has been unanimously approved by both the Elecsys and Lindsay boards of directors. Upon closing, Elecsys will become a wholly owned subsidiary of Lindsay. The parties are targeting a January 2015 closing, subject to customary conditions, including receipt of Elecsys shareholder approval. 

Elecsys did not comment on what the acquisition would mean for its OEM customers. EMS sales make up about half of Elecsys' $30 million in annual revenues.

"We believe this transaction marks the beginning of an exciting new chapter for Elecsys, our employees, our customers, and the industries we serve, while providing immediate value to our stockholders at a premium to our share price," said Karl Gemperli, president and chief executive of Elecsys. "The opportunity to be acquired by Lindsay presents a unique strategic opportunity to combine our industry leading M2M technology with Lindsay's expansive global footprint and market presence to expand our solutions into additional industries and markets around the world."

"Lindsay is excited to announce the acquisition of Elecsys," commented Rick Parod, Lindsay's president and chief executive. "This represents a key strategic addition to Lindsay Corporation's extensive competencies and is important to our long term strategy of leading the market in advanced technologies for managing water use efficiency. The Elecsys team has done an excellent job of developing proprietary M2M solutions that are field proven with a strong customer base in water, energy production, agriculture, and transportation."

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