Pure Technologies Ltd., (TSX: PUR) announced June 13 that it has purchased the business and assets of Electromechanical Technologies Inc. (EMTEK), a Salt Lake City-based developer of advanced pipeline inspection technologies.
The base purchase price is US$3 million, payable in cash. There is provision for additional payments of up to US$4 million, based on a percentage of revenue recognized from the purchased technologies to the end of 2013. Additional consideration cannot exceed US$2,000,000 in any year.
Commenting on the transaction, Pure president and COO Jack Elliott said, “The ground-breaking extra-high resolution magnetic flux leakage (XHR-MFL) systems developed by EMTEK will immediately position Pure as the industry leader in condition assessment of ferrous water and wastewater pipelines. Conventional MFL is a well established technique for inspecting oil and gas pipelines; however the internal cement mortar lining common in water pipelines has always created challenges. EMTEK’s patented technology has overcome these challenges.
“While the majority of our growth to date has come from the inspection, condition assessment and monitoring of prestressed concrete pressure pipelines, this type of pipe represents less than five percent of the total installed base of pressure pipe around the world. The EMTEK technology, opens up a much larger available market to us, and complements our SmartBall and
“In the oil and gas sector, we will now be able to package the EMTEK system with our unique SmartBall leak detection system, thus providing the only combined integrity and pinhole-leak detection capability available on the market. Recent high-profile oil and gas pipeline leaks in
“EMTEK’s commitment to innovative non- destructive testing systems fits well with Pure’s aggressive R&D program and the patents acquired with the transaction will strengthen our already comprehensive IP portfolio. EMTEK’s solutions will be delivered through our regional offices in the
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world.