Ametek Inc (NYSE:AME) is said to be nearing a $1.5-billion deal to acquire Abaco Systems Inc for as much as $1.5 billion.
The electronics instruments maker is talking with its current owner and private equity firm Veritas Capital to acquire the former General Electric Co (NYSE:GE) subsidiary.
Abaco primarily offers products and services related to rugged computing in sectors like defense and aerospace in addition to commercial and industrial organizations. It was bought by Veritas in December 2015 for an undisclosed amount and was then named GE Intelligent Platforms.
Ametek employs about 17,000 people across 30 countries, Bloomberg noted based on its website. The stock has risen about 107% over a year, and is down about 0.2% year-till-date.
Said CEO David Zapico, "We are excited for the opportunity to acquire Abaco Systems. Their market leading embedded computing solutions are ideally positioned across a number of attractive aerospace and defense platforms, further broadening our differentiated product offering serving these markets."
Abaco Systems has annual sales of approximately $325 million and is headquartered in Huntsville, Alabama. The transaction is subject to customary closing conditions, including applicable regulatory approvals, and is expected to close mid-2021. Upon closing, Abaco Systems will join AMETEK as part of its Electronic Instruments Group (EIG) - a leader in advanced analytical, monitoring, testing, calibrating and display instruments with annualized sales of $3.0 billion.
Ametek shares opened Monday up four cents to $120.80.
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