Fortive, a Fortune 500 company based in Everett, has recently announced its plans to acquire Elektro-Automatik, a German power supply manufacturer, in a $1.45 billion deal. The agreement is expected to be finalized in the early months of next year.
Elektro-Automatik specializes in the production of power supplies and electronic test equipment for industrial use, particularly in the research, energy storage, and power generation sectors. By acquiring Elektro-Automatik, Fortive aims to strengthen its position in the electronic test and measurement field, while also supporting the global energy transition.
The purchase of Elektro-Automatik will further enhance Fortive’s strategy of electrification of everything, which encompasses the increasing utilization of batteries, power grids, energy storage systems, artificial intelligence, and greener energy vehicles. This aligns with the shifting industry trends towards sustainable and environmentally friendly solutions.
Fortive is a conglomerate that includes several well-known companies such as Fluke Corp., which manufactures electronic testing tools, and Tektronix, based in Portland. The addition of Elektro-Automatik’s products will complement Tektronix’s portfolio, particularly in the high-power market segment.
The deal is subject to customary closing conditions and regulatory approvals. To finance the acquisition, Fortive plans to utilize available cash and debt financing options. Financial advisors Morgan Stanley & Co. and J.P. Morgan Securities played a key role in facilitating the transaction, with legal counsel provided by Freshfields Bruckhaus Deringer.
Headquartered in Everett, Fortive operates in over 50 countries and employs more than 18,000 people in various capacities, encompassing research and development, manufacturing, distribution, administration, and sales and service.
Fortive’s journey began in 1998 when Danaher Corp., based in Washington D.C., acquired Fluke, a company founded by John Fluke Sr. in 1948. In 2016, Danaher split into two entities, creating Fortive as a separate company. The following year, Fortive made its debut on the New York Stock Exchange under the symbol FTV, reporting annual revenue of $5.82 billion in the most recent fiscal year.
The acquisition of Elektro-Automatik is a significant move for Fortive, allowing it to expand its capabilities in the electronic test and power supply sectors, positioning the company for continued success in the evolving energy landscape.
