March 13, 2020
Technology, Semiconductors and Electronics
Mergers and Acquisitions
GCA Advises Deutsche Private Equity on the Business Combination Between First Sensor and TE Connectivity
GCA acted as exclusive financial advisor to Deutsche Private Equity on the business combination between its portfolio company, First Sensor, and TE Connectivity.
The transaction with TE Connectivity Sensors Germany Holding AG (“TE”), an affiliated company of TE Connectivity Ltd., allows First Sensor, with its market-leading product portfolio, to become part of a global technology and manufacturing leader for connectivity and sensor solutions. The deal will also provide the companies with the scale, customer base and existing sensor expertise to create a more comprehensive offering for a deeper and broader customer base. First Sensor will extend TE’s already extensive sensors product range and will add application solutions for key growth markets.
A global player in sensor technology, First Sensor (SIS) develops and produces standard sensors and customer-specific sensor solutions for key applications in the industrial, medical and mobility markets. The company has been listed on the Frankfurt Stock Exchange since 1999.
TE Connectivity Ltd. (NYSE: TEL) is a $14 billion global technology and manufacturing leader working to create a safer, sustainable, productive and connected future. For more than 75 years, TE’s connectivity and sensor solutions, proven in the harshest environments, have enabled advancements in transportation, industrial applications, medical technology, energy, data communications and the home. TE employs 80,000 people, including more than 8,000 engineers who work alongside customers in approximately 140 countries.
The transaction, including the assumption of First Sensor’s outstanding net debt and minority interest, is valued at approximately €307 million ($347 million). The tender offer will have no minimum acceptance threshold but will be subject to receipt of necessary antitrust and other regulatory clearances, as well as other customary closing conditions.
“With regard to our business model and product portfolio, a combination of First Sensor’s and TE’s businesses offers a strategic advantage and significantly furthers the business opportunities for both companies. The value and the growth prospects of our attractive technology portfolio and application solutions in the industrial, medical and mobility target markets are reflected in the current offer,” commented Dr. Dirk Rothweiler, CEO of First Sensor AG. “At the same time the transaction is a clear opportunity for growth for First Sensor’s workforce.”