Transcat Acquires NEXA Enterprise Asset Management For $22.5M

• Transcat, Inc. (NASDAQ: TRNS) has purchased Cal Opex Limited (d/b/a NEXA Enterprise Asset Management) for $22.5 million, consisting of $20.25 million in cash $2.25 million in common stock.

• Additionally, there are potential earn-out payments of up to $7.5 million over the next four years based upon NEXA achieving specific annual revenue and EBITDA goals.

• Privately-held Cal Opex, founded in Ireland in 2015, provides calibration optimization and other technical solutions to improve asset and reliability management programs to pharmaceutical, biotechnology, and medical device companies.

• In March 2021, Cal Opex was rebranded as NEXA Enterprise Asset Management. It has 65 employees and $7.5 million in annual revenue, with ~70% in the U.S. and 30% in Ireland.

• NEXA has a profitability profile with EBITDA margins in the mid-thirties and is expected to be immediately accretive to the Service segment's current profitability.

• Transcat held cash in hand of $0.254 million as of June 26, 2021.

• John Cummins, NEXA President and CEO, will continue to lead the business and will report directly to Transcat CEO Lee Rudow.

• Price Action: TRNS shares are trading higher by 1.58% at $67.62 on the last check Tuesday.

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