Global ship building company, Austal (ASX:ASB) has inked a deal to buy 100 per cent of ElectraWatch.
The cash consideration for the deal is US$6.75 million with no net debt.
ElectraWatch has developed a unique system for testing aluminum used in demanding environments.
The company is expected to have a 2018 revenue of US$2-3 million.
The shipbuilder says ElectraWatch will support and increase our range of services for key customer the US Navy.
Shares in Austal (ASX:ASB) closed down 0.56 per cent to $1.77 yesterday.