Amphenol Corporation (APH - Free Report) recently announced that it has entered into an agreement to acquire the Advanced Sensors business of General Electric (GE - Free Report) for approximately $318 million.
General Electric’s Advanced Sensors unit is a supplier of highly engineered sensors and sensor-based instruments. The company sells its products to transportation, automotive, medical and other industrial markets. The acquisition is expected to close by the end of this year and is expected to be accretive to earnings in the first year itself.
The strategic move is aimed to deliver value-added solutions to Amphenol’s customers across a wide range of end markets. The sensor and sensor-based product offerings complement Amphenol’s core interconnects offering and is expected to deliver long-term expansion opportunity. The experienced management team of Advanced Sensors and the strong operating discipline of Amphenol are expected to be beneficial for both the companies.
Over the years, Amphenol has acquired on a global basis in the high-growth segments that have complementary capabilities from a product, customer or geographic standpoint.
Amphenol designs and manufactures connectors and interconnecting systems that are primarily used to transmit electrical and optical signals for a wide range of sophisticated electronic applications. The company designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and high-speed specialty cable.
Amphenol currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include Avago Technologies Ltd (AVGO - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Molex Inc. , carrying a Zacks Rank #2 (Buy).