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Amphenol Corporation to acquire MTS Systems for $1.7 billion
The interconnect, antenna and sensor solutions specialist has entered into a definitive agreement with MTS Systems, a supplier of test systems, motion simulators and precision sensors, under which will acquire MTS for USD 1.7 billion.
“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, in a press release. “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.” Amphenol will acquire MTS for USD 58.50 per share in cash, or approximately USD 1.7 billion. MTS is organized into two business segments, namely 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. The Test & Simulation segment is a business which Amphenol believes possesses excellent near and long-term potential. Accordingly, Amphenol plans to undertake a strategic review of the business to best position it for future success. “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,” says 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.” The transaction has been unanimously approved by the boards of both companies and is expected to close by the middle of 2021.