High-speed specialty cables maker Amphenol Corp said on Wednesday it would buy MTS Systems Corp in a $1.7 billion deal, beefing up its range of sensor and sensor-based products.
MTS shareholders will receive $58.50 per share held, representing a premium of 51.9% to the stock’s close on Tuesday.
Shares of MTSC rose 49.3% to $57.5 in premarket trading.
The deal is likely to close by mid-2021 and is expected to add to Amphenol’s earnings in the first year after completion.
Amphenol said it plans to undertake a strategic review of MTS’s test and simulation business.
Centerview Partners was the financial adviser to Amphenol, while J.P. Morgan Securities and Evercore advised MTS. Reuters