AB Dynamics has acquired US-based eMpulse Test Systems for an initial £8.1m, with further earn-out payments linked to performance targets over the next three years.

A further £1.4m is expected to be paid following completion for working capital adjustments, while up to $15m of contingent consideration could be payable over three years subject to performance targets.

AB Dynamics designs and manufactures advanced testing, simulation and measurement equipment for the global automotive and transportation industries. Michigan-based eMpulse is small relative to AB Dynamics, but it strengthens the UK company's laboratory testing offering, deepens its US presence, and gives management opportunities to drive growth through international distribution.

eMpulse generated revenue of $5.5m and adjusted operating profit of $400,000 in 2025, following disruption from global tariffs. AB Dynamics said trading had recovered strongly in the first half of 2026 and expected the acquisition to be earnings enhancing in FY27, with further benefits as commercial synergies are delivered.

AIM-listed AB Dynamics, headquartered in Bradford-on-Avon, Wiltshire, reported revenue of £114.7m for FY2025, up 3%, while adjusted earnings rose 15% to £27.8m and adjusted operating profit increased 15% to £23.3m.

In its latest half-year results, revenue fell 16% to £48.8m, and adjusted operating profit fell 16% to £9.1m. Net cash remained strong at £39.3m at the end of February. The acquisition has been funded from AB Dynamics’ existing cash resources.

AB Dynamics expects to generate growth by combining eMpulse’s complementary servoelectric technology with its existing Suspension Parameter Measurement Machine business, while using its global sales network to expand eMpulse’s presence beyond North America, particularly in Japan. The three existing shareholders will remain with the business.

Sarah Matthews-DeMers, CEO of AB Dynamics, said: "eMpulse's product suite is highly complementary to the group's existing portfolio, specifically as an adjacent product to our SPMM, both in relation to its customer base and its servoelectric technology, which provides increased performance and greater energy efficiency compared to its hydraulic alternatives.

"eMpulse has a first-class reputation for providing testing products to its North American OEM customer base and we look forward to leveraging the established global customer relationships and sales capabilities of AB Dynamics to drive cross-selling and expand this further internationally. We expect the acquisition to provide us with an excellent platform for growth."

AB Dynamics shares rose around 2.2% to £7.98 in morning trading following the announcement, with earlier trading showing a gain of 2.88% to just over £8.03.

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