Amphenol Corporation has agreed to acquire sensor manufacturer MTS Systems Corporation for about USD1.7 billion, the two US-based companies announced on 9 December.
Amphenol and MTS are based in the US states of Connecticut and Minnesota, respectively. (Getty Images)
Amphenol, which makes connectors, antennas, and sensors for defence and other industries, said the acquisition is consistent with its goal of expanding its offerings in the fast-growing sensor market.
Purchasing MTS “positions Amphenol to have one of the industry’s broadest ranges of sensors and sensor-based products”, the companies wrote in a joint press release.
MTS’s sensors measure vibration, pressure, position, force, and sound in various applications.
MTS also has a Test & Simulation business segment, and Amphenol indicated it will “undertake a strategic review of the business to best position it for future success”.
Amphenol plans to use a mix of cash in hand and borrowing to pay for MTS. The acquisition is expected to close by mid-2021.
Founded in 1966 MTS is based in Eden Prairie, Minnesota, and has 3,500 employees across the Americas, Europe, and Asia. It had revenue of USD613.5 million and net income of USD8.6 million in the first nine months of fiscal year 2020. It is scheduled to release its fourth-quarter financial results on 15 December.
MTS’s recent defence contract awards include USD187 million to provide sensors for US Department of Defense systems, and USD30.4 million from the US Army to design and build a heavy-vehicle durability simulator.
Amphenol, which is based in Wallingford, Connecticut, had net sales of USD6.2 billion and net income of USD853.1 million in the first nine months of 2020. It plans to release its fourth-quarter 2020 results on 27 January.
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1. US Security from Michael_Novakhov (88 sites)