SPX Technologies Announces Agreement to Purchase Kranze Technology Solutions (“KTS”)
SPX Technologies (NYSE:SPXC) has announced a definitive agreement to acquire Kranze Technology Solutions (KTS) for approximately $350 million in cash. KTS, headquartered in Des Plaines, Illinois, specializes in digital interoperability and tactical networking solutions, with strong ties to the US Marine Corps.
KTS is projected to generate revenue of approximately $90 million for 2025, with segment income margin and revenue growth rate above the Detection & Measurement segment average. The acquisition will be financed through SPX's revolving credit facility and is expected to close in Q1 2025, subject to regulatory approval.
This marks SPX's 15th acquisition since 2018, scaling their CommTech platform to over $200 million in revenue. The integration will enhance SPX's tactical datalinks and RF countermeasure offerings, particularly in US military platforms and the Asia Pacific region.
SPX Technologies (NYSE:SPXC) ha annunciato un accordo definitivo per acquisire Kranze Technology Solutions (KTS) per circa 350 milioni di dollari in contante. KTS, con sede a Des Plaines, Illinois, è specializzata in interoperabilità digitale e soluzioni di networking tattico, con forti legami con il Corpo dei Marines degli Stati Uniti.
KTS si prevede genererà un fatturato di circa 90 milioni di dollari per il 2025, con margine di reddito e tasso di crescita del fatturato superiori alla media del segmento Rilevazione e Misura. L'acquisizione sarà finanziata attraverso la linea di credito revolving di SPX e si prevede si chiuderà nel primo trimestre del 2025, soggetta ad approvazione normativa.
Questa è la quindicesima acquisizione di SPX dal 2018, aumentando la loro piattaforma CommTech a oltre 200 milioni di dollari di fatturato. L'integrazione migliorerà le offerte di datalink tattici e di contromisure RF di SPX, in particolare sulle piattaforme militari statunitensi e nella regione dell'Asia-Pacifico.
SPX Technologies (NYSE:SPXC) ha anunciado un acuerdo definitivo para adquirir Kranze Technology Solutions (KTS) por aproximadamente 350 millones de dólares en efectivo. KTS, con sede en Des Plaines, Illinois, se especializa en interoperabilidad digital y soluciones de redes tácticas, con fuertes lazos con el Cuerpo de Marines de los EE. UU.
Se proyecta que KTS genere ingresos de aproximadamente 90 millones de dólares para 2025, con un margen de ingresos y una tasa de crecimiento de ingresos superiores a la media del segmento de Detección y Medición. La adquisición será financiada a través de la línea de crédito revolvente de SPX y se espera que se finalice en el primer trimestre de 2025, sujeta a la aprobación regulatoria.
Esta es la décimo quinta adquisición de SPX desde 2018, ampliando su plataforma CommTech a más de 200 millones de dólares en ingresos. La integración mejorará las ofertas de enlaces de datos tácticos y contramedidas de RF de SPX, especialmente en plataformas militares estadounidenses y en la región de Asia-Pacífico.
SPX Technologies (NYSE:SPXC)는 Kranze Technology Solutions (KTS)를 약 3억 5천만 달러에 현금으로 인수하기 위한 확정 합의를 발표했습니다. 일리노이주 데스플레인의에 본사를 두고 있는 KTS는 디지털 상호 운용성과 전술 네트워킹 솔루션에 특화되어 있으며, 미 해병대와 강한 유대관계를 가지고 있습니다.
KTS는 2025년까지 약 9천만 달러의 수익을 창출할 것으로 예상되며, 세그먼트 소득 마진과 수익 성장률은 탐지 및 측정 세그먼트의 평균을 초과할 것으로 보입니다. 이번 인수는 SPX의 재활용 신용 시설을 통해 자금을 조달할 예정이며, 규제 승인을 조건으로 2025년 1분기에 마무리될 것으로 기대됩니다.
이번 인수는 2018년 이후 SPX의 15번째 인수로, CommTech 플랫폼의 수익을 2억 달러 이상으로 확장하게 됩니다. 통합은 SPX의 전술 데이터 링크 및 RF 대응책 제공을 향상시킬 것이며, 특히 미국 군사 플랫폼 및 아시아 태평양 지역에서 더욱 두드러질 것입니다.
SPX Technologies (NYSE:SPXC) a annoncé un accord définitif pour acquérir Kranze Technology Solutions (KTS) pour environ 350 millions de dollars en espèces. KTS, dont le siège est à Des Plaines, dans l'Illinois, se spécialise dans l'interopérabilité numérique et les solutions de réseaux tactiques, avec des liens étroits avec le Corps des Marines des États-Unis.
KTS devrait générer un chiffre d'affaires d'environ 90 millions de dollars pour 2025, avec une marge de revenu du segment et un taux de croissance des revenus supérieurs à la moyenne du segment Détection et Mesure. L'acquisition sera financée par la facilité de crédit renouvelable de SPX et devrait être finalisée au premier trimestre de 2025, sous réserve de l'approbation réglementaire.
Ceci marque la 15ème acquisition de SPX depuis 2018, augmentant sa plateforme CommTech à plus de 200 millions de dollars de revenus. L'intégration améliorera les offres de liaisons de données tactiques et de contre-mesures RF de SPX, en particulier sur les plateformes militaires américaines et dans la région Asie-Pacifique.
SPX Technologies (NYSE:SPXC) hat eine endgültige Vereinbarung zur Übernahme von Kranze Technology Solutions (KTS) für etwa 350 Millionen Dollar in bar bekannt gegeben. KTS mit Sitz in Des Plaines, Illinois, ist auf digitale Interoperabilität und taktische Netzwerk-Lösungen spezialisiert und hat enge Verbindungen zum U.S. Marine Corps.
Für 2025 wird prognostiziert, dass KTS einen Umsatz von etwa 90 Millionen Dollar erzielen wird, wobei die Segment-Einkommensmarge und das Umsatzwachstumsrate über dem Durchschnitt des Segments Erkennung & Messung liegen. Die Übernahme wird durch die revolvierende Kreditfazilität von SPX finanziert und soll im ersten Quartal 2025 abgeschlossen werden, unter Vorbehalt der regulatorischen Genehmigung.
Dies ist die 15. Akquisition von SPX seit 2018, wodurch die CommTech-Plattform auf über 200 Millionen Dollar Umsatz skaliert wird. Die Integration wird das Angebot von SPX an taktischen Datenlinks und RF-Countermeasures verbessern, insbesondere in US-Militärplattformen und im asiatisch-pazifischen Raum.
- Acquisition expected to be accretive to SPX's adjusted earnings per share in 2025
- KTS projected revenue of $90M for 2025 with above-average segment margins
- Expands SPX's CommTech platform to over $200M in revenue
- Strong existing relationships with US Marine Corps and secured positions in military platforms
- Significant tax attributes included in the purchase
- Substantial cash outlay of $350M increasing debt through credit facility usage
- Regulatory approval required under Hart-Scott-Rodino Act could delay closing
Insights
This
The acquisition's strategic value lies in three key areas: 1) It scales SPX's CommTech platform beyond
The acquisition of KTS significantly enhances SPX's tactical communications capabilities. KTS's digital interoperability solutions are particularly valuable in modern military operations where seamless information sharing across multiple platforms is critical. Their established position in US Marine Corps programs provides stable, long-term revenue streams typical of defense contracts.
The timing is strategic given the increasing focus on network-centric warfare and the need for sophisticated tactical networking solutions. The complementary fit with SPX's existing RF countermeasure and tactical datalink offerings creates a comprehensive communications suite that should strengthen their competitive position in defense procurement programs. The Asia-Pacific expansion opportunity is particularly relevant given regional tensions and increasing defense modernization efforts.
This marks SPX's 15th acquisition since 2018, demonstrating a consistent execution of their roll-up strategy in specialized technical markets. The transaction metrics suggest disciplined capital allocation - the purchase price relative to revenue and margin profile aligns with market multiples for defense technology acquisitions. The use of revolving credit facility for financing maintains flexibility while leveraging the current low-interest environment.
The margin profile being above segment average suggests potential for immediate earnings enhancement, while the tax attributes acquired could provide additional financial benefits. For investors, this represents a continuation of SPX's successful platform-building strategy, with clear pathways to value creation through operational synergies and market expansion.
Further Strengthens and Scales Communications Technologies Platform;
Significant Installed Base and Attractive Pipeline of Growth Opportunities
CHARLOTTE, N.C., Dec. 23, 2024 (GLOBE NEWSWIRE) -- SPX Technologies (NYSE:SPXC) announced today that it has entered into a definitive agreement to purchase Kranze Technology Solutions, Inc. (“KTS”), a leader in digital interoperability and tactical networking solutions. Upon closing, KTS will become a part of SPX Technologies’ Communication Technologies (“CommTech”) platform, within its Detection & Measurement segment.
Headquartered in Des Plaines, Illinois, KTS has developed a strong reputation for advanced digital interoperability and tactical networking solutions which integrate and distribute real-time information across multiple communications domains and platforms to enhance situational awareness, coordination, and tactical execution during operations. KTS has built trusted relationships with customers, particularly with the US Marine Corps, equipping KTS’ products on numerous marquee platforms.
Under the terms of the agreement, SPX Technologies will purchase KTS and certain significant tax attributes for approximately
The parties anticipate the closing of the transaction in the first quarter of 2025, subject to regulatory clearance under the Hart-Scott-Rodino Act. SPX Technologies intends to finance the acquisition by drawing on its revolving credit facility. After the interest cost of financing, the acquisition is anticipated to be modestly accretive to SPX’s adjusted earnings per share in 2025.
“We are looking forward to welcoming KTS to the SPX Technologies team,” said Gene Lowe, President and CEO of SPX Technologies. “Along with our TCI and ECS businesses, KTS is an excellent fit with our existing CommTech platform within our Detection & Measurement segment. KTS’ differentiated digital interoperability solutions are highly complementary to our existing tactical datalinks and radio frequency (RF) countermeasure offerings and bring significant and further growth opportunities to our business.”
Mr. Lowe continued, “KTS further strengthens and complements our long-term customer relationships and geographic footprint and brings a significant installed base, and secure long-term positions within growing, long-lifecycle US military platforms that rely on their highly differentiated technology. The Company has a strong pipeline of growth opportunities in the US and the strategically important Asia Pacific region.”
Mr. Lowe further commented, “This will be our 15th acquisition since 2018 and further validates our strategy of building high-quality, market-leading platforms. KTS will scale our CommTech platform to more than
Dr. Richard Kranze, KTS’ Founder and CEO, said, “The combination of KTS and SPX Technologies’ Communication Technologies platform is a natural next step in the growth of our business that will provide numerous opportunities for our employees and partners. Bringing together two leading communications technologies providers with SPX Technologies’ substantial resources, technological capabilities, and business system is a recipe for significant growth and value creation. The KTS team looks forward to working with the SPX team to build an even stronger, more valuable business.”
About KTS: Founded in 2008, KTS is a leading provider of digital interoperability and tactical networking solutions that drive superior situational awareness, interoperability, and increased survivability across multiple platforms and domains.
About SPX Technologies, Inc: SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies has more than 4,100 employees in 15 countries. SPX Technologies is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.
Investor and Media Contacts:
Paul Clegg, Vice President, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Technologies
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