NEW YORK, N.Y. – Swiss electronics maker TE Connectivity is buying sensor maker Measurement Specialties for $1.37 billion.
TE Connectivity said Wednesday it will pay $86 per share in cash for the Hampton, Virginia, company that makes a range of sensors measuring things such as pressure, vibration, temperature and humidity.
The companies value the deal at $1.7 billion including Measurement Specialties’ debt. They expect the sale to close before the end of 2014.
TE Connectivity said the deal will make it one of the largest sensor companies in the world and boost its profit growth. The company expects $13.8 billion to $14.1 billion in sales in its current fiscal year, which ends in September. Measurement Specialties expects $540 million in revenue over the 12 months ending in March.
Shares of Measurement Specialties Inc. rose 25 cents Wednesday, closing at $78 before the deal was announced. The purchase price comes at a premium of 10.3 per cent from that price.
Measurement Specialties stock jumped $8.05 to $86.05 in aftermarket trading.
Shares of TE Connectivity Ltd. added 16 cents to close the regular trading session at $61.94 and tacked on $1.06 to $63 aftermarket.