Amphenol Expands Defense and AI Reach with $1 Billion Trexon Acquisition

Amphenol Corporation (NYSE:APH) has acquired cable assembly firm Trexon for $1 billion in cash, expanding its military portfolio and defense reach. The deal is expected to be accretive to earnings per share in the first year and complements Amphenol's existing offerings in the defense market. Amphenol has also acquired CommScope's Connectivity and Cable Solutions segment for $10.5 billion.

Amphenol Corporation (NYSE:APH) has announced the acquisition of Trexon for approximately $1 billion in cash, marking a significant expansion of its military portfolio and defense reach. The deal, which is expected to be completed in the fourth quarter of 2025, pending regulatory approvals, aims to strengthen Amphenol's position in the defense industry [1].

Trexon, based in Boston with operations in the U.S. and the U.K., specializes in high-reliability interconnect and cable assemblies primarily for the defense market. The company's products are highly complementary to Amphenol's existing offerings in the defense sector. Amphenol President and CEO R. Adam Norwitt stated that Trexon's unique portfolio of high-reliability cable assembly products will be a valuable addition to their existing offerings [1].

The acquisition is expected to be accretive to earnings per share in the first year after closing. Trexon is projected to generate sales of approximately $290 million in 2025 with EBITDA margins of about 26%. Following the acquisition, Trexon will be integrated into Amphenol’s Harsh Environment Solutions segment [1].

This acquisition comes on the heels of Amphenol's impressive second-quarter earnings report, where revenue reached $5.65 billion and earnings per share were $0.81, significantly exceeding analyst expectations. Additionally, Amphenol has also announced a $10.5 billion acquisition of CommScope’s Connectivity and Cable Solutions segment, expected to close in the first half of 2026, pending shareholder approval [1].

Analysts have been active following these developments. Truist Securities raised its price target for Amphenol to $126, UBS increased its price target to $120, and Evercore ISI maintained its Outperform rating with a $110 price target. BofA Securities raised its price target to $110, noting a book-to-bill ratio below 1 and expected declines in IT Datacom revenue [1].

References:
[1] https://www.investing.com/news/company-news/amphenol-to-acquire-defense-interconnect-supplier-trexon-for-1-billion-93CH-4197578