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

Further Strengthens and Scales Communications Technologies Platform;

Significant Installed Base and Attractive Pipeline of Growth Opportunities

CHARLOTTE, N.C., Dec. 23, 2024 (GLOBE NEWSWIRE) -- SPX Technologies (NYSE:SPXC) announced today that it has entered into a definitive agreement to purchase Kranze Technology Solutions, Inc. ("KTS"), a leader in digital interoperability and tactical networking solutions. Upon closing, KTS will become a part of SPX Technologies' Communication Technologies ("CommTech") platform, within its Detection & Measurement segment.

Headquartered in Des Plaines, Illinois, KTS has developed a strong reputation for advanced digital interoperability and tactical networking solutions which integrate and distribute real-time information across multiple communications domains and platforms to enhance situational awareness, coordination, and tactical execution during operations. KTS has built trusted relationships with customers, particularly with the US Marine Corps, equipping KTS' products on numerous marquee platforms.

Under the terms of the agreement, SPX Technologies will purchase KTS and certain significant tax attributes for approximately $350 million in cash. KTS is anticipated to generate revenue of approximately $90 million for the full year 2025, with a segment income margin and revenue growth rate that are both modestly above the Detection & Measurement segment average.

The parties anticipate the closing of the transaction in the first quarter of 2025, subject to regulatory clearance under the Hart-Scott-Rodino Act. SPX Technologies intends to finance the acquisition by drawing on its revolving credit facility. After the interest cost of financing, the acquisition is anticipated to be modestly accretive to SPX's adjusted earnings per share in 2025.

"We are looking forward to welcoming KTS to the SPX Technologies team," said Gene Lowe, President and CEO of SPX Technologies. "Along with our TCI and ECS businesses, KTS is an excellent fit with our existing CommTech platform within our Detection & Measurement segment. KTS' differentiated digital interoperability solutions are highly complementary to our existing tactical datalinks and radio frequency (RF) countermeasure offerings and bring significant and further growth opportunities to our business."

Mr. Lowe continued, "KTS further strengthens and complements our long-term customer relationships and geographic footprint and brings a significant installed base, and secure long-term positions within growing, long-lifecycle US military platforms that rely on their highly differentiated technology. The Company has a strong pipeline of growth opportunities in the US and the strategically important Asia Pacific region."

Mr. Lowe further commented, "This will be our 15th acquisition since 2018 and further validates our strategy of building high-quality, market-leading platforms. KTS will scale our CommTech platform to more than $200 million in revenue, providing a solid foundation for further growth in closely adjacent end markets."

Dr. Richard Kranze, KTS' Founder and CEO, said, "The combination of KTS and SPX Technologies' Communication Technologies platform is a natural next step in the growth of our business that will provide numerous opportunities for our employees and partners. Bringing together two leading communications technologies providers with SPX Technologies' substantial resources, technological capabilities, and business system is a recipe for significant growth and value creation. The KTS team looks forward to working with the SPX team to build an even stronger, more valuable business."

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.

Investor and Media Contacts:

Paul Clegg, Vice President, Investor Relations and Communications

Phone: 980-474-3806

E-mail: [email protected]

Source: SPX Technologies