CTS announces agreement to Acquire Tusonix, Inc.
Jan 25, 2008
New ceramic filter capabilities broaden product offerings snd enhance growth opportunities
CTS Corporation (NYSE: CTS) announced it has reached a definitive agreement to acquire Tusonix, Inc., a privately held company, for $12.25 million in cash. Tusonix is a leader in the design and manufacture of ceramic EMI/RFI (electromagnetic interference and radio frequency interference) filters, capacitor assemblies and related components, serving the military, industrial, instrumentation and telecom markets. EMI/RFI filters protect against electromagnetic noise. The company operates from facilities in Tucson, Arizona and Nogales, Mexico. CTS expects the transaction to be accretive in year one and close by the end of January 2008.
First year sales are estimated at approximately $15 million to broadly distributed customers. The worldwide market for the acquired products is estimated to exceed $100 million.
The acquisition combines the Tusonix products with complementary offerings from CTS' Electronic Components business, which provides radio frequency (RF) filters, RF modules, oscillators, resistor arrays and thermal management components. The acquisition will broaden the CTS portfolio and enable cross-selling of a broader range of complementary products to existing customers of both companies. In addition, Tusonix's presence in the instrumentation and industrial process control market will open up new customer relationships and selling opportunities. CTS plans to continue operations at both of the current Tusonix facilities.
Commenting on the acquisition, Vinod M. Khilnani, CTS President and Chief Executive Officer said, "Tusonix has proprietary single-layer and multi-layer ceramic dielectric and material technology and is capable of producing thousands of product variations, which will allow us to broaden our product and technology offerings. This synergistic acquisition of Tusonix in our Components and Sensors segment is an excellent expansion of our technology, fits with our distribution channels and further expands our customer base."
For more information on Tusonix products, please contact customer service at (520)744-0400.