Moldflow has acquired Moorpark, CA-based American MSI Corporation, a provider of hot runner control systems for the injection molding industry.
Hot runners are a key element of sophisticated mould systems used in the manufacture of large components or moulds with high cavitation. They are typically used in the automotive, packaging and medical instrument industries.
The agreement calls for Moldflow to pay $7.3 million in cash and issue 349,288 shares of Moldflow’s common stock in exchange for 100% of the outstanding common stock of AMSI. Based on the closing price of Moldflow’s common stock on January 23, 2004, the transaction is valued at approximately $12 million.
American MSI, founded in 1984, recently introduced Altanium, a hot runner temperature control system that can support up to 384 mould control zones.
For calendar year 2003, American MSI had revenue of approximately $9 million.