Transcat Bolsters Its High Margin Rental Business Via Acquisition Of Axiom For $38M
Portfolio Pulse from Shivani Kumaresan
Transcat Inc (NASDAQ:TRNS) has acquired Axiom Test Equipment, Inc for $38 million, paid through a combination of $28 million in company stock and $10 million in cash. Axiom is a rental provider of Electronic Test Equipment across the U.S. The acquisition is expected to bolster Transcat's high margin rental business, with near-term combined gross margins expected to be in the 28% to 30% range.
August 08, 2023 | 5:35 pm
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Transcat's acquisition of Axiom is expected to boost its high margin rental business. The company's shares are trading higher following the announcement.
The acquisition of Axiom, a fast-growing player in the Test Equipment rental market, aligns with Transcat's historic performance and growth strategy. This is likely to have a positive impact on Transcat's stock in the short term as it strengthens its high margin rental business.
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