SPX Technologies Announces Agreement to Purchase Kranze Technology Solutions (“KTS”)

Core Insights - SPX Technologies has announced the acquisition of Kranze Technology Solutions, Inc. (KTS) for approximately $350 million in cash, which will enhance its Communication Technologies platform within the Detection & Measurement segment [2][3][4] - KTS is expected to generate approximately $90 million in revenue for the full year 2025, with performance metrics above the segment average [3][4] - This acquisition marks SPX's 15th since 2018, reinforcing its strategy to build high-quality, market-leading platforms [6] Company Overview - KTS, founded in 2008, specializes in digital interoperability and tactical networking solutions, enhancing situational awareness and interoperability across various platforms [5] - SPX Technologies is a supplier of engineered products and technologies, holding leadership positions in HVAC and detection and measurement markets, with over 4,100 employees across 15 countries [5][7] Strategic Implications - The acquisition is expected to scale SPX's CommTech platform to over $200 million in revenue, providing a strong foundation for growth in adjacent markets [6] - KTS's technology is highly complementary to SPX's existing tactical datalinks and RF countermeasure offerings, presenting significant growth opportunities [4][6] - The transaction is anticipated to close in the first quarter of 2025, subject to regulatory clearance, and is expected to be modestly accretive to SPX's adjusted earnings per share in 2025 [5]