St. Louis, MO, Dec. 2, 2005 — ESCO Technologies Inc. announced the acquisition of Nexus Energy Software Inc. (Nexus). The acquisition was accomplished through an all-cash for shares merger transaction. The initial consideration paid was $28.5 million. The acquisition agreement also provides for contingent consideration during the four year period following the merger if Nexus exceeds certain sales targets. The acquisition is not expected to have a material impact on earnings in fiscal 2006.
Nexus is a growing software company headquartered in Wellesley, Massachusetts. The company was founded in 1997 and has grown to an annual revenue level in excess of $10 million. Through its Meter Data Management products, Nexus supports several operations including forecasting, distribution asset optimization, complex billing, revenue protection, customer service and demand-response. More than 80 energy companies currently utilize Nexus software solutions.
Nexus will be led by the existing management team and will operate as a stand-alone subsidiary of ESCO reporting to the CEO. Nexus will continue to serve all its customers as it has in the past as well as collaborating with DCSI, ESCO’s utility communications business, where Nexus’ expertise can enhance the value proposition for DCSI’s customers.