NEW YORK (The Deal) -- Electronic component manufacturer TE Connectivity (TEL) said late Wednesday it plans to acquire Measurement Specialties (MEAS) for $1.7 billion in cash and debt, expanding its role as a maker of high-tech sensors.
Terms of the deal call for Schaffhausen, Switzerland-based TE Connectivity to pay $86 per share for Measurement Specialties, a premium of more than 10% over the target's $78 per share Wednesday close. The deal values Measurement Specialties' equity at about $1.4 billion.
Hampton, Va.-based Measurement Specialties is a designer and manufacturer of sensors and systems that measure and monitor pressure, vibration, force, temperature, humidity ultrasonics and fluid for a range of industries. The company generated $71.1 million in Ebitda on sales of $412.67 million in the twelve months ending March 31.
TE Connectivity said that the purchase adds nearly $40 billion to its addressable market, expanding the company in what management believes is a fast-growing, yet fragmented, sector of the electronics market.
"We are excited about this acquisition as it enables TE to provide customers with an unmatched range of connectivity and sensor solutions that are essential in a world where everything is increasingly connected," said TE Connectivity chairman and CEO Tom Lynch. "We look forward to combining Measurement Specialties' strong breadth of products and technologies with our deep customer relationships and global scale."
The buyer said it would fund the deal with cash and by taking on additional debt. The company said it expects the purchase to contribute to earnings per share during the first year, excluding acquisition-related costs.