Switzerland-based TE Connectivity Ltd., which has engineering and administrative offices in the midstate, has entered into a definitive agreement to acquire Virginia-based Measurement Specialties Inc. for $86 per share in cash, or about $1.7 billion including net debt.
The latter company is a leading global designer and manufacturer of sensors and sensor-based systems with expected revenue of $540 million in its current fiscal year. Its portfolio includes sensor technologies for pressure, vibration, force, temperature, humidity, ultrasonics, position and fluid for a wide range of applications and industries.
“The acquisition of Measurement Specialties is a key part of our strategy to be a leader in the very attractive, high-growth sensor industry and adds nearly $40 billion to our addressable market,” said Tom Lynch, TE Connectivity Chairman and CEO.
TE recently acquired a California-based underwater services firm for $490 million to expand its position in connectivity solutions for harsh environments. The latest deal further expands that position.
Acquiring Measurement Specialties, a deal expected to close this year, should create double-digit growth in TE’s sensor business, the company said.
Shares of TE are traded on the New York Stock Exchange under the ticker symbol TEL. The adjusted stock price closed at $61.94 on Wednesday, which was up about 15 percent from the beginning of the year, according to Yahoo Finance.