(Reuters) -Amphenol will buy cable assembly firm Trexon for about $1 billion in cash, the electronic equipment maker said on Monday, as it aims to tap into rising defense spending and expand its military-focused product portfolio.
Trexon specializes in connectivity products, including wire, cable and connectors, designed for industries ranging from military and defense to medical and quantum computing.
"Trexon's unique portfolio of high-reliability cable assembly products will be highly complementary
to our existing offerings in the defense market," said Amphenol CEO Adam Norwitt.
The proposed buyout comes just weeks after Amphenol — which makes cables, sensors and antennas — agreed to acquire CommScope's connectivity and cable solutions unit in a $10.5 billion deal, as it looks to capitalize on surging demand for AI-driven applications and high-speed data center infrastructure.
Shares of Amphenol, which expects to finance the deal with Trexon through cash on hand, were up marginally in premarket trading. They have risen more than 57% so far this year.
Trexon, which has facilities in the U.S. and the UK, is expected to have 2025 sales of around $290 million and EBITDA margin of 26%.
Amphenol expects the acquisition to boost its earnings per share in the first year after closing, which is likely in the fourth quarter of this year.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
