After the market close yesterday, Sensata announced its intention to acquire GIGAVAC, a leading provider of solutions that enable electrification in demanding environments (auto, HVOR, industrial, battery storage).
Deal details:
Purchase price $223M, using cash on hand
Deal accretive in the first year (2019)
Close expected in 4Q18
Benefit for Sensata:
Access to the $1B market for high voltage contactors used in electrified products (cars, delivery trucks, buses, charging stations)
Diversification of content growth opportunities outside of the traditional auto market
Incremental content in electric vehicles content, adding an additional $20/vehicle, which is now above the combustion engine content
GIGAVAC key numbers:
Revenue growth CAGR of 30% in the past 5 years
$80M in revenue expected for 2018 (2% of ST’s sales base)
Example of products:
$US.ST [tag ST]
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
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Suite 500
Boston, MA 02109