Benzinga | Feb 12, 2021 09:28AM EST

Sensata Acquires Xirgo For $400M

* Sensata Technologies Holding Plc (NYSE: ST) acquired telematics and data insight provider Xirgo Technologies Intermediate Holdings, LLC for $400 million, or 16 times its 2021 EBITDA.

* Xirgo's annual revenue is estimated to cross $100 million in 2021, with expected revenue growth of over 20% in the next several years.

* The transaction will be EPS accretive in 2021.

* The acquisition will play a vital role in advancing Sensata's Smart & Connected megatrend-focused growth initiative in the transportation and logistics end-markets. It will help Sensata expand beyond OEMs and address the broader fleet ecosystem, thereby doubling its total addressable market to $15 billion by 2030.

* Sensata's operating cash flow slipped 9.6% to $559.8 million, and debt financing rose by 156% to $1.15 billion in the fourth quarter of FY20.

* Price action: ST shares are up 2.90% at $57.90 in the pre-market session on the last check Friday.