Germany’s EA Elektro-Automatik has entered a definitive agreement to be acquired by NYSE-listed technology services conglomerate Fortive in a $1.45 billion, all-cash deal from Bregal Unternehmerkapital.
Offering operations, technologies, and healthcare services, Fortive’s acquisition of EA Elektro-Automatik is aimed at advancing the company’s market position in the field of electronic test and measurement, particularly leveraging EA Elektro-Automatik's expertise in the fields of energy storage, mobility, hydrogen, and renewable energy applications. According to Fortive, the deal is expected to position the company to benefit from an anticipated multi-decade, multi-industry market expansion.
Everett, Washington-based Fortive is no stranger to large ticket acquisitions. The company purchased healthcare sector software developer Provation in late 2021 for $1.4 billion, facility maintenance and repair services platform ServiceChannel for $1.2 billion in mid-2021, facilities and asset management platform Accruent for $2 billion in 2018, and healthcare sector service provider Advanced Sterilization Products in 2018 for $2.7 billion.
Fortive expects to finance the acquisition of EA Elektro-Automatik via available cash and debt financing. The company says that the acquisition will be accretive to adjusted gross and operating margins in fiscal year 2024, and the adjusted diluted net earnings per share to be “neutral to modestly” accretive.
Fortive President and CEO James A. Lico commented:
“We are pleased to announce our agreement to acquire EA Elektro-Automatik to enhance our leading position in electronic test and measurement, helping to enable the global energy transition. This acquisition will further position Fortive in multi-decade, multi-industry, high growth markets, leveraging Tektronix’s global franchise and the power of the Fortive Business System to create unparalleled value for customers and shareholders.”
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