Accelerates Growth Strategy of Communications Technologies Platform;
Highly Complementary Technology and Growth Markets
CHARLOTTE, N.C., Jan. 27, 2025 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) ("SPX", the "Company", "we" or "our") announced today that it has completed the acquisition of Kranze Technology Solutions, Inc. ("KTS"), a leader in digital interoperability and tactical networking solutions. KTS is now a part of SPX Technologies' Communication Technologies ("CommTech") platform, within its Detection & Measurement segment. KTS is anticipated to be modestly accretive to adjusted earnings per share from continuing operations in 2025. Management plans to provide 2025 guidance including the impact of KTS on February 25, 2025, when SPX Technologies reports Q4 2024 results.
"We are excited to welcome the KTS team to the SPX Technologies family," said Gene Lowe, President and CEO of SPX Technologies. "This transaction significantly scales our position in Communication Technologies and expands our value creation opportunities in highly complementary growth markets across our global customer base. KTS's advanced digital interoperability technology and strong position in U.S. defense platforms are an excellent fit with SPX's existing tactical datalinks, communications intelligence, and radio frequency (RF) countermeasure offerings."
Richard Kranze, co-founder of KTS commented, "We are delighted for KTS to be joining SPX Technologies' CommTech team. Bringing together SPX's expertise and resources with KTS's strong technology and customer relationships creates numerous growth opportunities for employees, customers, and shareholders. I look forward to helping the SPX Technologies team to build an even stronger, more valuable platform."
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.
Non-GAAP Financial Information: This press release refers to adjusted earnings per share from continuing operations (or, adjusted EPS) which is not financial measures as determined in accordance with accounting principles generally accepted in the United States ("GAAP"). This non-GAAP financial measure does not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measure under GAAP. Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance. These items include, but are not limited to, acquisition costs, costs associated with dispositions, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, any reconciliation of our non-GAAP financial guidance to the most comparable GAAP financial measures is not practicable.
Forward Looking Statements: Statements in this press release with respect to the future impact of the acquisition of KTS are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the Company's documents filed with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: changes and specific industry events in KTS's markets; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and KTS's ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; cyber-security risks; risks with respect to the protection of intellectual property; defects or errors in current or planned products; the impact of pandemics and governmental and other actions taken in response; domestic economic, governmental, political and business developments adversely affecting KTS's Company's business, including regulatory changes; changes in applicable economic conditions, including as a result of geopolitical conflicts; uncertainties with respect to the successful integration of KTS and achieving cost savings or other benefits from the acquisition; potential labor disputes; and extreme weather conditions and natural and other disasters. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements, except as required by law.
Investor and Media Contacts:
Paul Clegg, Vice President, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Technologies
