ATS enters agreement to acquire BioDot Inc.

CAMBRIDGE — On Apr. 14, ATS Automation Tooling Systems Inc., an automation solutions provider, announced that it has entered into a definitive agreement to acquire BioDot, Inc., a manufacturer of automated fluid dispensing systems for US$84 million (~C$106 million), subject to customary post-closing adjustments, representing 9.7x BioDot’s FY2022 expected EBITDA or 8.4x post synergies(1). The transaction is expected to close in the second calendar quarter of 2021, pending the completion of customary regulatory filings. ATS plans to fund the acquisition by drawing on its revolving credit facility.

“The addition of BioDot expands our Life Sciences capabilities in precise, low volume fluid dispensing and enhances our position in the point-of-care and clinical diagnostics lab automation end-markets,” said Andrew Hider, CEO of ATS. “With a long track record, applications expertise and deep customer relationships, BioDot’s systems enable customers to manufacture billions of test devices annually. Given the transition toward near-patient and at-home diagnostic testing for a broad range of infectious diseases including Covid-19, and other medical and non-medical testing applications, the acquisition of BioDot will allow us to play a bigger role in supporting the needs of our Life Sciences customers for the long term.”

BioDot manufactures premium, non-contact and quantitative fluid dispensing systems serving customers in point-of-care and clinical diagnostics. BioDot’s proprietary technology and patent portfolio allow it to meet stringent industry requirements and address customer needs in R&D, pilot production and rapid, high-volume production. In FY2020, BioDot generated revenues of US$36 million and EBITDA of US$15 million. Approximately 50% of its revenues is derived from customers in North America, 26% from EMEA, 18% from China, and the remainder from other regions. BioDot derives 75% of its sales from point-of-care diagnostic systems, 9% from life sciences & clinical systems, and 16% from aftermarket services & consumables. BioDot employs 94 employees spread across its two US manufacturing facilities and locations in China and the UK.

BioDot will continue to be led by its long tenured CEO, Tony Lemmo who remarked, “By leveraging the combined technologies and capabilities of BioDot and ATS, we will create unique solutions for our global customer base. Joining ATS will also allow us to ramp up our R&D efforts and will provide new opportunities for our talented employees. We look forward to the next chapter of BioDot’s growth within ATS.”