TE Connectivity Significantly Invests in Expansion of Sensing Technology Offerings
TE Connectivity, a global industrial tech company known for its connectivity and sensing solutions, has completed its public takeover of First Sensor AG, with TE now holding 71.87% of First’s shares.
First Sensor, which was founded in the 1990s as an early tech start-up, develops and produces standard and custom sensors for applications including photonics, pressure, and advanced electronics for markets including industrial, medical, and transportation.
The acquisition will combine First Sensor’s and TE’s portfolios, allowing TE to provide a broader range of products, including innovative sensors, connectors, and systems that support its own growth strategy.
First Sensor headquarters in Germany. Image used courtesy of First Sensor AG.
Advantages of Acquisition for TE Connectivity
First Sensor carries out its primary operations in Germany, supplemented by development, production, and sales sites in the US & Canada, China, the Netherlands, the UK, France, Sweden, and Denmark. These locations offer TE a valuable market expansion opportunity.
"The business combination with First Sensor is yet another milestone in TE Connectivity's commitment to being a leader in the sensor space and continuing to provide customers with a high level of product innovation and service," said John Mitchell, senior vice president and general manager of TE's sensors business. "The First Sensor team's capabilities, as well as their products, strongly align with the markets we serve and create greater opportunity to serve our customers."
TE Connectivity's Stake in First Sensor
To date, TE has acquired 7,380,905 of First Sensor’s shares in total. This corresponds to approximately 71.87% of the company’s total share capital and majority voting rights in First Sensor. The acquisition has been wholly supported by First Sensor’s own management and supervisory boards.
And in news that should come as no surprise by this point, TE’s executive board is expecting the novel infectious disease COVID-19 to have a significant impact on the global economy in the fiscal year 2020 and anticipates that its own sales could suffer as a result.
A Period of Growth for Sensing Application Development
TE's acquisition of First Sensor marks its one of many recent procurements of sensing technology developers, as TE acquired Silicon Microstructures in September of last year from Elmos Semiconductor, a major manufacturer of MEMS-based pressure sensors.
Signaling a decisive move to further focus on expanding its sensor application portfolio in the coming year, TE announced that it had also acquired Alpha Technics in May. A decision theorized to target and influence growth in their product offerings for the medical, industrial, transportation and automotive industries.