CUI Global Inc. has closed on the purchase of Orbital Gas Systems Ltd., a provider of natural gas processing technologies, for an undisclosed amount.

Orbital, based in the United Kingdom, provides natural gas technologies, including metering, odorization, remote telemetry units and a diverse range of personalized gas technologies to utilities and power generators.

Effective immediately, Orbital-UK will become a wholly owned subsidiary of CUI Global. Andrew Ridge will continue as the managing director of Orbital-UK. William Clough will remain as president and chief executive of CUI Global, and assume the role of chief executive of Orbital-UK. CUI Global does not expect any organizational changes to Orbital-UK's operations in the United Kingdom or elsewhere.

The acquisition offers significant synergies for revenue growth. Orbital-UK's internationally recognized expertise in the natural gas industry, including bringing together the patented VE-technology with the Vergence(R) GasPT2 device from CUI Global offer natural gas operators/users a comprehensive solution set for the next generation of energy metering systems.

The acquisition was concluded with a portion of the proceeds of a $48.3 million follow-on offering the company recently completed with the assistance of Craig-Hallum Capital Group LLC (acting as sole book-running manager of the offering) and Merriman Capital, Inc. (acting as co-manager of the offering). Following the acquisition and associated costs of the raise, the company will have more than $20,000,000 or $1.00 per share in cash and cash equivalents available for marketing, sales, R&D, and other working capital needs.

"This transaction effectively positions CUI Global for even more accelerated growth," explained William Clough, CUI Global's president and chief executive. "Orbital-UK's talent base of technical employees and their world-class engineering and support team, not to mention their sterling reputation within the natural gas industry, will enable us to speed market adoption of our combined GasPTi device; while CUI Global's established network of global distributors will allow Orbital-UK to market its broad portfolio of natural gas products to a much larger audience."

"This is a very significant company milestone for Orbital," explained Orbital-UK's managing director, Andy Ridge. "With the combination of these two companies we will now be able to expand our programs and services for our existing customer base, as well as pursue growth opportunities across a much broader market.

As part of a global entity, we expect enhanced visibility in the market and heightened awareness for our company offerings. Further, the addition of the Vergence GasPT2 technology to our current product line is expected to increase our ability to penetrate new markets and thereby grow our core business."