Amphenol (APH) Expands Defense, AI Reach With $1 Billion Trexon Deal

Amphenol Corporation (NYSE:APH) is one of the best stocks to invest in for long-term growth. On August 18, electronic equipment giant Amphenol Corporation (NYSE:APH) said it will buy cable assembly firm Trexon for about $1 billion in cash. The acquisition will help the company get exposure to the rising defense spending and expand its military portfolio.

The company’s CEO, Adam Norwitt, said, “Trexon’s unique portfolio of high-reliability cable assembly products will be highly complementary to our existing offerings in the defense market.

Amphenol has been on an acquisition spree. The company acquired CommScope’s Connectivity and Cable Solutions segment in a $10.5 billion deal earlier this month.  The company will be able to tap into the burgeoning demand for the segment’s AI-driven applications and high-speed data center infrastructure.

Amphenol expects the acquisition to be accretive to its earnings per share in the first year after closing the deal, which is likely to happen in the fourth quarter of this year.

Amphenol Corporation (NYSE:APH) has seen steady revenue growth over the years and has been able to expand its margin steadily, too. and is trading at a forward P/E of 35.19x.

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