MTS Completes Acquisition of E2M Technologies B.V.

EDEN PRAIRIE, Minn., Nov. 26, 2018 — MTS Systems Corporation (Nasdaq: MTSC), a leading global supplier of high-performance test systems and sensors, announced today that it closed on the acquisition of E2M Technologies B.V. (“E2M”) on November 21, 2018.

This acquisition significantly expands MTS Test and Simulation technology and product offerings for human-rated simulation systems; brings key regulatory approvals and customers in high-growth flight simulation and entertainment markets and provides compelling financial profile to enhance MTS revenue growth, margins, earnings and free cash generation.

E2M is a leader in high-quality, durable, electrically-driven motion systems, serving primarily the human-rated entertainment and training simulation markets. Key product applications include high-technology motion simulators for the amusement park industry and flight simulators for certified pilot training, both of which offer substantial growth opportunities for the future.

E2M has utilized its unique design capabilities and outstanding force and motion technologies to systematically gain the required regulatory and customer quality approvals for demanding human-rated motion systems, including motion platforms for “Level D” flight simulators for pilot training, and for key customers in the burgeoning theme park and vehicle simulator industries. Due to the exceptional value, quality and reliability of its motion platforms, E2M has developed a premium customer base and is poised to substantially exceed market growth rates.

The newly acquired business will be reported as part of the MTS Test segment, which will be renamed “Test and Simulation” to reflect the growth in simulation applications across all MTS market sectors. Once integrated into the MTS Test and Simulation segment, E2M, with its exceptional electric force simulation and motion technical expertise, will leverage MTS’ global sales and service network to support continued exciting growth within its core markets of entertainment, certified flight and general motion simulation.

From a technology standpoint, E2M’s electric actuation expertise will accelerate the development of electric force simulation and motion solutions in the MTS Test and Simulation’s core markets of material, aerospace, civil infrastructure and automotive testing and simulation. In addition to gaining access to exciting adjacent simulation markets and advancing key electric motion technologies, MTS also gains an expanded local engineering and manufacturing base in its European market and a proven leadership team in E2M.

E2M is expected to contribute nearly $30 million in incremental revenues in fiscal 2019 and double-digit growth thereafter.

Dr. Jeffrey Graves, president and Chief Executive Officer of MTS, stated, “We are very excited about adding E2M Technologies to our company, as we accelerate our growth in electric motion and simulation technologies and broaden our market exposure. E2M motion systems offer unprecedented replication of real-world environments in human-capable systems, providing a safe, effective, and highly efficient way to train pilots, as well as locomotive, ship and mass transit operators, and even vehicle drivers for new ground vehicle systems.

“These markets, along with the rapid expansion in number, scale and sophistication of amusement parks globally, provide outstanding growth opportunities for our company. We also place a strong emphasis on the talent and demonstrated capabilities of the acquired company’s management team. E2M’s strong technology position and track record for outstanding growth and profitability with extremely demanding customers worldwide is a testament to their leadership and the entrepreneurial spirit of the organization. With this cultural match to MTS, we are confident that the financial return of this investment will not only be met, but greatly surpassed in the future.”

E2M co-founder and Chief Executive Officer, Jan van Bekkum stated, “MTS’ renowned engineering expertise, exceptional brand, and global footprint, when combined with E2M’s superb electric motion technology and strong adjacent market positions, offer exceptional growth opportunities for the combined entity. MTS’ broad array of products and technologies and global sales and service enables E2M to provide its customers better service and support, and we are excited to work together.”

ABOUT MTS SYSTEMS CORPORATION

MTS Systems Corporation’s testing hardware, software and services solutions help customers accelerate and improve their design, development and manufacturing processes and are used for determining the mechanical behavior of materials, products and structures. MTS’ high-performance sensors provide measurements of vibration, pressure, position, force and sound in a variety of applications. MTS had 3,400 employees as of September 29, 2018 and revenue of $778 million for the fiscal year ended September 29, 2018. Additional information on MTS can be found at www.mts.com.