SPX Technologies acquires Kranze Technology Solutions to enhance its Communication Technologies platform and expand growth opportunities.
Quiver AI Summary
SPX Technologies, Inc. has announced the completion of its acquisition of Kranze Technology Solutions, Inc. (KTS), a leading provider of digital interoperability and tactical networking solutions. This acquisition enhances SPX's Communication Technologies platform within its Detection & Measurement segment and is expected to positively impact adjusted earnings per share in 2025. SPX's CEO, Gene Lowe, expressed enthusiasm about the strategic fit with KTS's technology and its strong presence in U.S. defense platforms, creating new growth opportunities. KTS co-founder Richard Kranze also highlighted the synergy between the two companies and the advantages it presents for employees, customers, and shareholders. SPX plans to provide updated financial guidance, including the effects of the acquisition, on February 25, 2025.
Potential Positives
- The acquisition of Kranze Technology Solutions, a leader in digital interoperability and tactical networking, significantly expands SPX Technologies' position within the Communication Technologies sector.
- KTS is expected to be modestly accretive to adjusted earnings per share from continuing operations in 2025, indicating a positive impact on the company's financial performance.
- The merger creates numerous growth opportunities through enhanced resources and expertise, benefitting employees, customers, and shareholders alike.
- KTS’s strong presence in U.S. defense platforms aligns well with SPX’s existing offerings, providing expanded access to highly complementary growth markets.
Potential Negatives
- The acquisition is described as only "modestly accretive" to adjusted earnings per share in 2025, which may indicate limited immediate financial impact and could raise concerns about future growth potential.
- The press release highlights numerous risk factors associated with the acquisition and the operations of KTS, suggesting potential uncertainties that could affect SPX Technologies' performance.
- Forward-looking statements indicate reliance on market conditions and successful integration, which could signal underlying vulnerabilities in SPX's growth strategy and execution capabilities.
FAQ
What recent acquisition did SPX Technologies announce?
SPX Technologies announced the acquisition of Kranze Technology Solutions, Inc. (KTS), a leader in digital interoperability and tactical networking solutions.
How will the acquisition of KTS impact SPX's earnings?
The acquisition is anticipated to be modestly accretive to adjusted earnings per share from continuing operations in 2025.
When will SPX provide guidance on the impact of KTS?
SPX will provide 2025 guidance, including the impact of KTS, on February 25, 2025, during its Q4 2024 results report.
What expertise does KTS bring to SPX Technologies?
KTS provides advanced digital interoperability technology and has a strong position in U.S. defense platforms, complementing SPX’s existing capabilities.
Where is SPX Technologies located?
SPX Technologies is based in Charlotte, North Carolina, and employs over 4,100 individuals across 15 countries globally.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$SPXC Congressional Stock Trading
Members of Congress have traded $SPXC stock 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $SPXC stock by members of Congress over the last 6 months:
- REPRESENTATIVE JOSH GOTTHEIMER sold up to $15,000 on 12/06.
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$SPXC Hedge Fund Activity
We have seen 169 institutional investors add shares of $SPXC stock to their portfolio, and 167 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- PRINCIPAL FINANCIAL GROUP INC removed 520,416 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $82,985,535
- JPMORGAN CHASE & CO added 513,526 shares (+666.7%) to their portfolio in Q3 2024, for an estimated $81,886,855
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 376,567 shares (-23.8%) from their portfolio in Q3 2024, for an estimated $60,047,373
- INVESCO LTD. added 292,520 shares (+35.6%) to their portfolio in Q3 2024, for an estimated $46,645,239
- SILVERCREST ASSET MANAGEMENT GROUP LLC removed 225,300 shares (-47.2%) from their portfolio in Q3 2024, for an estimated $35,926,338
- JANUS HENDERSON GROUP PLC added 217,316 shares (+45.3%) to their portfolio in Q3 2024, for an estimated $34,653,209
- AMERIPRISE FINANCIAL INC removed 202,305 shares (-16.0%) from their portfolio in Q3 2024, for an estimated $32,259,555
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Accelerates Growth Strategy of Communications Technologies Platform;
Highly Complementary Technology and Growth Markets
CHARLOTTE, N.C., Jan. 27, 2025 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or “our”) announced today that it has completed the acquisition of Kranze Technology Solutions, Inc. (“KTS”), a leader in digital interoperability and tactical networking solutions. KTS is now a part of SPX Technologies’ Communication Technologies (“CommTech”) platform, within its Detection & Measurement segment. KTS is anticipated to be modestly accretive to adjusted earnings per share from continuing operations in 2025. Management plans to provide 2025 guidance including the impact of KTS on February 25, 2025, when SPX Technologies reports Q4 2024 results.
“We are excited to welcome the KTS team to the SPX Technologies family,” said Gene Lowe, President and CEO of SPX Technologies. “This transaction significantly scales our position in Communication Technologies and expands our value creation opportunities in highly complementary growth markets across our global customer base. KTS’s advanced digital interoperability technology and strong position in U.S. defense platforms are an excellent fit with SPX’s existing tactical datalinks, communications intelligence, and radio frequency (RF) countermeasure offerings.”
Richard Kranze, co-founder of KTS commented, “We are delighted for KTS to be joining SPX Technologies’ CommTech team. Bringing together SPX’s expertise and resources with KTS’s strong technology and customer relationships creates numerous growth opportunities for employees, customers, and shareholders. I look forward to helping the SPX Technologies team to build an even stronger, more valuable platform.”
About KTS: Founded in 2008, KTS is a leading provider of digital interoperability and tactical networking solutions that drive superior situational awareness, interoperability, and increased survivability across multiple platforms and domains.
About SPX Technologies, Inc : SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies has more than 4,100 employees in 15 countries. SPX Technologies is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com .
Non-GAAP Financial Information: This press release refers to adjusted earnings per share from continuing operations (or, adjusted EPS) which is not financial measures as determined in accordance with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial measure does not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measure under GAAP. Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance. These items include, but are not limited to, acquisition costs, costs associated with dispositions, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, any reconciliation of our non-GAAP financial guidance to the most comparable GAAP financial measures is not practicable.
Forward Looking Statements: Statements in this press release with respect to the future impact of the acquisition of KTS are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: changes and specific industry events in KTS’s markets; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and KTS’s ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; cyber-security risks; risks with respect to the protection of intellectual property; defects or errors in current or planned products; the impact of pandemics and governmental and other actions taken in response; domestic economic, governmental, political and business developments adversely affecting KTS’s Company’s business, including regulatory changes; changes in applicable economic conditions, including as a result of geopolitical conflicts; uncertainties with respect to the successful integration of KTS and achieving cost savings or other benefits from the acquisition; potential labor disputes; and extreme weather conditions and natural and other disasters. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements, except as required by law.
Investor and Media Contacts:
Paul Clegg, Vice President, Investor Relations and Communications
Phone: 980-474-3806
E-mail:
[email protected]
Source: SPX Technologies