Sensata acquires privately-held GIGAVAC FOR approximately $233M
Sensata Technologies announced that it has reached an agreement to acquire privately-held GIGAVAC, LLC for an enterprise value of approximately $233M, funded out of the company's cash balances. The addition of GIGAVAC's portfolio will enable Sensata to tap into a broad $1B market opportunity for high-voltage contactors required in electrified products such as cars, delivery trucks, buses, material handling equipment, and charging stations. GIGAVAC will immediately augment Sensata's ongoing investments. GIGAVAC's revenues have grown by a CAGR of more than 30% over the past five years and the company expects to record approximately $80M in revenue for 2018, which is primarily generated from customers in the United States. The acquisition is expected to be slightly accretive to Sensata's FY19 adjusted earnings per share. The transaction is subject to customary regulatory approvals and is expected to close in Q4 of 2018. Sensata intends to maintain GIGAVAC's existing employee base and operations in Carpinteria, California following the transaction.