SensorPulse is Latest Acquisition by Total Control
In what's become an ongoing series of acquisitions, Total Control Products Inc. recently agreed to buy signal processing manufacturer SensorPulse Corp. (South Easton, Mass.).Total Control is paying for substantially all of SensorPulse's assets with 41,667 shares (about $500,000 worth) of Total Control stock, $1.
In what's become an ongoing series of acquisitions, Total Control Products Inc. recently agreed to buy signal processing manufacturer SensorPulse Corp. (South Easton, Mass.).
Total Control is paying for substantially all of SensorPulse's assets with 41,667 shares (about $500,000 worth) of Total Control stock, $1.25 million in cash, and a four-year future earnings payment based on a portion of pretax revenues to be paid half in cash and half in Total Control stock. This future earnings payment could be worth up to $5 million.
The SensorPulse purchase is essentially designed to expand Total Control's product line, as well as the distribution network available to SensorPulse's products.
"This acquisition represents a strategic investment in the area of signal conditioning and I/O devices, which is a natural product extension for our line of open control products," says Nicholas Gihl, Total Control's president, ceo, and board chair. "Additionally, this creates an opportunity for our distribution channel to sell products it didn't have access to previously. We believe these products have a better price and performance relationship than the current competition."
Since 1996, Total Control's other acquisitions have included Cincinnati/DynaComp (Cincinnati, O.), Taylor Industrial Software (Edmonton, Alberta, Canada), and Computer Dynamics (Greenville, S.C.). Formerly known as Cincinnati Electrosystems, Cincinnati/DynaComp manufactures operator interfaces, message displays, and industrial computers. Taylor Industrial Software continues to develop industrial software products to increase automation productivity.
In conjunction with the acquisition, Kevin Roach, SensorPulse's president, is also entering into a four-year employment contract with Total Control. Mr. Roach will remain in charge of SensorPulse's operations, and the organization will continue to operate from its current location. Founded in 1989, SensorPulse designs and develops industrial signal conditioning products and networked I/O devices. It has marketed its products primarily through private-label agreements, most of which recently began selling products.
"Synergies are readily apparent here. Our original concept was to go to market with winning technology products, then look for a partner with strong channel to market. Total Control Products provides us with strong distributors and representative organizations. We're already working on a cooperative project to broaden our I/O line," said Mr. Roach on Jan. 12. "We're also planning to consolidate our signal conditioning program into a broader offering, and have more types in or near 100% of our markets to allow us to bid on all the jobs that make sense."