M&A
confidence high
sentiment positive
materiality 0.90
ESCO to acquire Megger for $2.35B; Q2 prelim revenue $309M, adj EPS $1.91
ESCO TECHNOLOGIES INC
- Acquisition of Megger Group for $2.35B ($0.9B cash + $1.4B equity); ~14x projected 2026 EBITDA including synergies.
- Megger expected ~$590M revenue in 2026; ~$60M cost synergies targeted within first three years post-close.
- Preliminary Q2 FY2026: Revenue $309M, GAAP EPS $1.29, Adjusted EPS $1.91 — above prior guidance.
- TBG (seller) gets board nomination rights and lock-up provisions; closing subject to regulatory approvals.