Under the agreement, NTS will acquire LTI for $6 million in cash in addition to an earn-out of up to an additional $1 million based on performance targets within the first 48 months after the acquisition.
NTS president and CEO William C. McGinnis said the acquisition positions NTS as an enhanced comprehensive testing and engineering services company with increased access to new commercial and non-defense industry markets. McGinnis noted that the acquisition also boosts NTS’ service offerings and geographic reach, among other complementary incentives.
“While LTI is a niche business, it is a very important one. It complements our current capabilities and the testing services provided by LTI are a staple requirement for many commercial aerospace applications, as well as for a number of other commercial and industrial applications,” McGinnis stated in the press release. “LTI also has a strategically important customer base that will give us additional exposure to clients in the aerospace, commercial and electronics markets. LTI presents many new opportunities for us with its clients and adds LTI’s capabilities to our menu of services for our current clients.”
LTI is an internationally recognized engineering services and testing laboratory specializing in the field of lightning protection. For the 12 months ended July 31, 2011, LTI reported sales of approximately $4.6 million. The company’s client base includes General Electric, Hamilton Sundstrand, FAA, NASA’s Kennedy Space Center, Walt Disney World’s Epcot, Typhoon Lagoon, and Animal Kingdom parks; it has also provided lightning protection design for major aircraft and space vehicles and launch facilities including NASA Space Shuttle and KSC launch complexes.
NTS said it believes LTI is the only U.S. firm that can test and certify that commercial aircraft meet all requirements of the Federal Aviation Administration’s specification DO160.
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