TE Connectivity Buys Measurement Specialities for $1.7B - Analyst Blog

Leading connectivity company, TE Connectivity (TEL) recently completed the acquisition of global designer and manufacturer of sensor and sensor-based systems – Measurement Specialties Inc. Valued at $1.7 billion, including debt, the deal is expected to close in 2014, subject to regulatory approval. TE Connectivity will fund the transaction with cash as well as debt. Initially announced in Jun 2014, the acquisition is expected to prove accretive to the company's earnings in fiscal 2015.

The acquisition is a strategic move by TE Connectivity in order to become the leader in the high potential sensor industry. Further, post acquisition, Measurement Specialties is expected to contribute around $40 billion to TE Connectivity's addressable market. This deal will help TE Connectivity offer an unmatched range of connectivity and sensor solutions and capitalize on the growing connectivity demand worldwide. The integration of Measurement Specialties' leading range of sensors and sensor systems into its sensor business will establish TE as the largest sensor company in the world.

Based in Hampton, VA, Measurement Specialties offers an extensive portfolio of sensor technologies which include pressure, vibration, force, temperature, humidity, ultrasonics, position and fluid, for a wide range of applications and industries. 

The afore-mentioned acquisition marks the second one for TE Connectivity this year after the recent takeover of SEACON Group in the month of April. The SEACON Group positioned TE Connectivity as a leading provider of connectivity solutions for harsh environmental applications.

TE Connectivity operates through four segments which together command a $100 billion market value. Moreover, the company's business is expected to grow at an annual rate of 5% over the next 5 years.

TE Connectivity currently has a Zacks Rank #2 (Buy). There are some other electronic miscellaneous companies that are doing equally well. They include AU Optronics Corp. (AUO), IEC Electronics Corp. (IEC) and Sparton Corp. (SPA) with a Zacks Rank #1 (Strong Buy).