Moldflow buys hot runner controls manufacturer

Moldflow Corporation has acquired American MSI Corporation, a maker of hot runner control systems for the injection molding industry based in Moorpak, CA. The agreement calls for Moldflow to pay $7.3 million in cash and issue over three-hundred thousand shares of Moldflow’s common stock in exchange for 100% of the outstanding common stock of AMSI. The total value of the transaction is estimated at approximately $12 million.
Founded in 1984, American MSI recently introduced Altanium, a hot runner temperature control system that is being billed as the industry’s first and only small-footprint solution able to support up to 384 mold control zones. American MSI has an active base of more than 3000 customers and over 8,000 installations. For 2003, American MSI had revenue of approximately $9 million.