EVERETT — Fortive, the Everett-based Fortune 500 company, has inked an agreement to acquire Elektro-Automatik, a German-based manufacturer of power supplies and electronic test equipment for industrial use.
The $1.45 billion all cash deal is expected to close early next year.
The Fortive roster of companies includes Fluke Corp., the maker of electronic testing tools that shares Fortive’s south Everett campus near Paine Field. Other subsidiaries include Fluke Health Solutions, Industrial Scientific Corporation, Provation Software, Advanced Sterilization Products, Gems Sensors & Controls and Tektronix, based in Portland.
“We are pleased to announce our agreement to acquire Elektro-Automatik to enhance our leading position in electronic test and measurement, helping to enable the global energy transition,” Fortive president and CEO James Lico said in a statement.
Elektro-Automatik is known for its high-power direct current power supplies and test equipment that serves the research, energy storage and power generation industries.
Their products “complement and diversify Tektronix’s offerings in the high-power market,” Lico said in an email to The Daily Herald.
The purchase will further accelerate Fortive’s “electrification of everything” — its strategy to help enable the global energy transition, Lico said. The strategy refers to the expanding use of batteries, power grids and energy storage systems, as well as AI and vehicles using greener energy.
The deal is subject to customary closing conditions and regulatory approvals. Fortive expects to finance the purchase with available cash and debt financing.
Morgan Stanley & Co. and J.P. Morgan Securities served as financial advisors. Freshfields Bruckhaus Deringer served as legal counsel to Fortive.
Headquartered in Everett, Fortive employs more than 18,000 employees — in research and development, manufacturing, distribution, administration and sales and service — in more than 50 countries.
Fluke was founded by the late John Fluke Sr. in 1948. In 1959, he moved the company from Seattle to Snohomish County.
Danaher Corp. acquired Fluke in 1998. The Washington D.C.-based firm split into two companies in 2016 and created Fortive. That same year, Fortive went public on the New York Stock Exchange under the symbol FTV.
Fortive reported annual revenue of $5.83 billion last year.