TE Connectivity To Buy Measurement Specialties For $1.7 Bln, Including Debt

(RTTNews) - Diversified electronics maker TE Connectivity (TEL), Wednesday agreed to acquire sensors technology company Measurement Specialties (MEAS) for $86 cash per share or a total transaction value of about $1.7 billion, including debt.

Switzerland-based TE expects the deal to entrench its niche position in the high-growth sensor market and expand into the harsh environment application business.

TE expects the deal to close in calendar year 2014, and be be accretive to 2015 adjusted earnings per share.

"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 chief executive officer.

Following the announcement, Measurement Specialties shares gained more than 10 percent in after-hours trade on the Nasdaq.

Hampton, Virginia-based Measurement Specialties makes sensors and sensor-based systems. Its portfolio includes pressure, vibration, temperature, ultrasonics for a range of applications.

For the current fiscal year, Measurement Specialties expects revenue of $540 million. Early June, the company posted a fourth-quarter profit that increased marginally to $9.3 million, with sales climbing 18 percent to $105 million.

The company's scale along with Measurement Specialties' sensor product range will create double-digit growth in TE's sensor business and result in cost and tax synergies. TE indicated intrinsic strength in the businesses, given its OEM relationships, go-to-market resources, engineering expertise, and leadership in harsh environment applications.

Among other deals, TE in April agreed to acquire Seacon, a provider of underwater connector technology and systems, for $490 million in a bid to expand its range of connectivity solutions for the oil and gas sector. TE Connectivity stock closed Wednesday at $61.94, up $0.16 or 0.26%, on a volume of 853k shares on the NYSE.

Measurement Specialties stock closed at $78.00, up $0.25 or 0.32%, on the Nasdaq. In after hours, the stock gained $8.20 or 10.51%, at $86.20.