Ametek (AME) - Get Report, the producer of electronic instruments and electromechanical devices, said it agreed to purchase Abaco Systems from the New York private-equity firm Veritas Capital for $1.35 billion cash.
Abaco is the Huntsville, Ala., producer of computing systems for military, aerospace and industrial applications. The company reports annual sales of some $325 million.
At closing, Abaco will join the electronic-instruments group of Ametek, which is based in Berwyn, Pa.
The deal is expected to close in mid-2021, subject to conditions including regulatory clearances.
Abaco develops what Ametek called ruggedized products “designed to withstand harsh operating environments such as extreme temperature and high vibration.”
Ametek Chief Executive David Zapico in a statement called Abaco’s embedded computing solutions “ideally positioned across a number of attractive aerospace and defense platforms,” which will help the company expand in various markets.
Ametek posted 2020 sales of more than $4.5 billion, of which $3 billion, about two-thirds, came from the electronic-instruments group. Parent Ametek employs 17,000 people in 30 countries.
Veritas Capital purchased Abaco in December 2015 when it was called GE Intelligent Platforms, Bloomberg reported. Terms weren't disclosed.
The New York PE firm is known for striking deals with government and aerospace-related businesses, Bloomberg reported.
At last check Ametek shares were trading 0.5% higher at $121.38.