Shares of MTS Systems (MTSC), a supplier of test systems, motion simulators, and sensors, skyrocketed on Wednesday. The stock had jumped more than 50% as of 10:50 a.m. EST.
The stock's gain follows news that Amphenol (APH 0.81%), a provider of high-technology interconnect, antenna, and sensor solutions, agreed to acquire MTS Systems.
The definitive agreement for Amphenol to acquire MTS Systems represents a $1.7 billion deal when including the assumption of MTS' debt, liabilities, and cash. Explaining the stock's move higher on Wednesday, Amphenol agreed to pay $58.50 in cash per share for MTS. After the gain today, shares are trading for just under $58.
"We have long admired MTS' technology and position across a variety of attractive end markets," said Amphenol CEO Adam Norwitt in a press release about the deal. "This acquisition is consistent with our strategy of continuing to expand our range of sensor and sensor-based products across a wide array of industries to further capitalize on the long-term growth potential of the electronics revolution."
Though the deal has been unanimously approved by the board of directors of both companies, it is still subject to regulatory approval, a vote by MTS shareholders, and other closing conditions. The acquisition is expected to close by the middle of next year.