Amphenol To Acquire MTS Systems In $1.7 Bln Deal, Including Debt – Quick Facts
Amphenol Corp. (APH), a provider of high-technology interconnect, antenna and sensor solutions, has agreed to acquire MTS Systems Corp. (MTSC) for for $58.50 per share in cash, or about $1.7 billion, the two companies said Wednesday. The deal value includes the assumption of outstanding debt and liabilities, net of cash.
MTS Systems is a supplier of test systems, motion simulators and precision sensors.
The transaction has been approved by the boards of both companies and is expected to close by the middle of 2021.
“This acquisition is consistent with our strategy of continuing to expand our range of sensor and sensor-based products across a wide array of industries to further capitalize on the long-term growth potential of the electronics revolution,” said Adam Norwitt, Amphenol’s President and CEO.
MTS is organized into two business segments: Sensors and Test & Simulation.
Amphenol noted that the Sensors segment represents a highly complementary offering of high-technology, harsh environment sensors sold into diverse end markets and applications. The segment positions Amphenol to have one of the industry’s broadest ranges of sensors and sensor-based products.
Amphenol plans to undertake a strategic review of the Test & Simulation business to best position it for future success.
Amphenol expects the acquisition to be accretive to its earnings per share in the first year after closing, with about $0.10 and $0.06 attributable to MTS’s Sensors and Test & Simulation segments, respectively.
Source: Read Full Article