TE Connectivity to Buy Astrodyne for $1.4B, Guides Q4 Above Views
TEL is trading near its 52-week low of $177.21 (9.3% above the low).
Summary
TE Connectivity is acquiring power management firm Astrodyne TDI from Tinicum for $1.4 billion under a definitive agreement, with the deal expected to close by the end of 2026. Astrodyne TDI is anticipated to contribute annual sales of more than $250 million, expanding TE's power solutions portfolio and aligning with AI-driven data center demand. This acquisition complements a strong quarter for TE Connectivity, which saw Q3 revenue grow 14% to $5.16 billion, beating estimates by $160 million, and adjusted EPS of $2.94 topping consensus by $0.10. The company also issued Q4 guidance above Street expectations, projecting $5.25 billion in revenue and $3.05 adjusted EPS, with CEO Curtin noting a 70% surge in orders building a robust backlog and the successful pass-through of higher raw material costs via price hikes. Despite the positive news, shares fell over 5% premarket, possibly due to profit-taking or concerns over tariff refund delays.
At the time of this announcement, TEL was trading at $193.64 on NYSE in the Manufacturing sector, with a market capitalization of approximately $61B. The 52-week trading range was $177.21 to $252.56. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.