Amphenol Corporation to Acquire MTS Systems
December 9, 2020 | Amphenol CorporationEstimated reading time: 2 minutes
Amphenol Corporation, a leading global provider of high-technology interconnect, antenna and sensor solutions, and MTS Systems Corporation, a leading global supplier of advanced test systems, motion simulators and precision sensors, announced that they have entered into a definitive agreement under which Amphenol will acquire MTS for $58.50 per share in cash, or approximately $1.7 billion, including the assumption of outstanding debt and liabilities, net of cash.
“We have long admired MTS’s technology and position across a variety of attractive end markets,” said R. Adam Norwitt, Amphenol’s President and CEO. “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. We are extremely excited about the strength of our combined product portfolio which will enable us to offer even more innovative technologies to our customers around the world. I look forward to welcoming the talented MTS team to the Amphenol family.”
“Amphenol is a leader in interconnect and sensor technologies with a proven management team and a strong track record of successfully acquiring companies across its platform,” said Randy J. Martinez, MTS’s Interim President and CEO. “MTS brings to Amphenol its high-quality technology solutions, a diversified customer base of blue-chip companies and a strong financial profile. We could not be more pleased to join forces with Amphenol, which will allow us to continue to deliver exceptional customer experience through high-quality and innovative solutions.”
David J. Anderson, Chairman of MTS’s Board of Directors, concluded, “The MTS Board of Directors is pleased, as a result of its strategic review, to deliver MTS Systems shareholders the value inherent in this transaction. I have full confidence that, together with Amphenol, MTS will continue to engineer technologies that meaningfully improve and modernize the world’s products – for the benefit of its customers – for generations to come.”
MTS is organized into two business segments: Sensors and Test & Simulation. The Sensors segment represents a highly complementary offering of high-technology, harsh environment sensors sold into diverse end markets and applications, and positions Amphenol to have one of the industry’s broadest ranges of sensors and sensor-based products. The Test & Simulation segment is an industry leader and Amphenol believes it represents an attractive business with excellent near and long-term potential. Accordingly, Amphenol plans to undertake a strategic review of the business to best position it for future success.
The acquisition of MTS is expected to be accretive to Amphenol’s earnings per share in the first year after closing, with approximately $0.10 and $0.06 attributable to MTS’s Sensors and Test & Simulation segments, respectively. This assumes the post-closing reduction of certain public company costs. The transaction will be financed through a combination of borrowings under Amphenol’s existing credit and commercial paper facilities as well as cash on hand.
The transaction has been unanimously approved by the boards of both companies and is expected to close by the middle of 2021, subject to certain regulatory approvals, approval from MTS’s shareholders and other customary closing conditions.
Suggested Items
Indium Experts to Present on High-Temperature, Lead-Free Solder Paste and High Reliability Liquid Metal Alloys Poster at ECTC
05/16/2024 | Indium CorporationIndium Corporation Research Associate Kyle Aserian will deliver a presentation at the 74th Electronic Components and Technology Conference (ECTC) on May 31, in Denver, Colorado.
Siemens, Foxconn Team Up to Optimize Forward-thinking Manufacturing
05/16/2024 | FoxconnSiemens AG, a leading technology company, and Hon Hai Technology Group (Foxconn), the world’s largest electronics manufacturer, have signed a memorandum of understanding (MoU) to drive digital transformation and sustainability in smart manufacturing platforms.
TactoTek Licenses IMSE Technology to Polestar for Sustainable Electronics Design Innovation
05/15/2024 | TactoTekPolestar, the Swedish electric performance car brand, and Finnish smart surface pioneer TactoTek, have entered a collaboration to explore integration of Injection Molded Structural Electronics (IMSE) technology into Polestar’s vehicle programs.
SiPearl: Partnership with Samsung Electronics for built-in HBM in Rhea
05/14/2024 | BUSINESS WIRESiPearl, the company building the high-performance low-power European microprocessor for HPC and AI inference, has signed a partnership with Samsung Electronics Co. Ltd., a world leader in advanced memory technology, to equip its Rhea series with Samsung’s advanced memory solution ideal for HPC and AI applications.
ispace EUROPE, CDS Sign Payload Service Agreement to Transport Precise Location Measurement Technology to the Moon
05/14/2024 | BUSINESS WIREispace EUROPE S.A., the Luxembourg-based subsidiary of ispace, inc., and Control Data Systems SRL (CDS) have signed a payload services agreement to transport precise location measurement equipment to the Moon, the two companies announced.