ATS Automation Buys VASPAC’s IP Assets

ATS Automation Tool (TSE: ATA), a provider of automation solutions, has acquired the intellectual property assets of VASPAC.

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VASPAC is a Canadian organization focused on software quality assurance and specialist advice to the nuclear industry.

Better Access to Nuclear Projects

VASPAC joins ATS’ industrial automation business and will support the company’s nuclear strategy while creating new synergies through overlapping customers and expanded portfolio offerings.

Key VASPAC employees will join ATS’ industrial automation operations in Cambridge, and VASPAC CEO Keith Bradshaw will support the transition.

Financial details of the transaction were not disclosed.

Management Commentary

ATS Automation president Udo Panenka said, “We are constantly looking to expand our value proposition for customers in the nuclear industry. With the expanded capabilities brought on by VASPAC, together with our global scale and the ability to leverage the ATS Business Model and our continuous improvement mindset, this acquisition offers great opportunities for us, in particular around the role of digitization to support our overall strategic road map.”

Wall Street’s Take

Earlier in February, TD Securities analyst Cherilyn Radbourne kept a Buy rating on ATA with a C$64 price target. This implies 33.3% upside potential.

Overall, consensus on the Street is that ATA is a Strong Buy based on three Buys. The average ATS Automation price target of C$64 implies 33.3% upside potential to current levels.

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