Mergers & Acquisitions

Mergers & Acquisitions

April 11, 2012

TE Connectivity to Sell Touch Solutions Business for $380M

TE Connectivity (News - Alert) is set to sell its Touch Solutions business to The Gores Group, subject to customary regulatory approvals. 

Part of TE's Communications and Industrial Solutions segment, Touch Solutions is a supplier of touch screens, touch monitors and all-in-one touch computers under the Elo TouchSystems brand.

Touch Solutions business generated sales of $413 million in fiscal year 2011.

Its sale will be made for $380 million, according to TE Connectivity, which has also agreed to sell its TE Professional Services (TPS) business to BlueStream Professional Services, LLC, an affiliate of KGP Logistics (News - Alert), for $23.5 million. 

TPS has been reported in the Telecom Networks business of TE's Network Solutions segment.

Acquired as part of TE's acquisition of ADC (News - Alert) in December 2010, TPS provides engineering, furnishing and installation services to communication service providers. 

TPS business recorded sales of $121 million in fiscal 2011.

TE Connectivity is a global, $14 billion company that designs and manufactures approximately 500,000 products that connect and protect the flow of power and data inside the products that touch every aspect of our lives. 

TE Connectivity expects both transactions to close in the Company's third fiscal quarter of 2012. The company also notes the results of both businesses will be recast for prior periods and reported as discontinued operations on the Company's financial statements, beginning with its fiscal second quarter, which ended March 30, 2012. 

TE Connectivity was in the news earlier this year for announcing Infrastructure Configuration Manager (ICM) software, specifically designed for customers of TE managed connectivity solutions.

Edited by Braden Becker

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