Test & Measurement Newsletter – Q3 2019

Test & Measurement Market Commentary

Trading multiples for Test & Measurement (T&M)⁽¹⁾ as of Q3 2019 recorded an overall mean EV/LTM EBITDA of 17.3x; with the mean EV/LTM EBITDA for Life Science Instrument companies at 19.3x, Testing, Inspection, and Certification (TIC) at 13.7x, and Instrumentation at 17.9x

Announced transaction volume increased by 4.0% in Q3 2019 over Q3 2018, while announced transaction value increased 127.3% to $2.5B in Q3 2019, primarily driven by two large transactions:

• Agilent Technologies $1.2B acquisition of BioTek Instruments
• AMETEK’s $925M acquisition of Gatan from Roper Technologies

Strategic buyers continued to be highly active in Q3 2019, participating in approximately 90% of announced deals, led by SGS SA and Eurofins Scientific with three and two transactions, respectively.

(1) T&M includes: Testing, Inspection & Certification (TIC); Instrumentation; and Life Sciences Instruments

Valuation Trends (EV / LTM EBITDA) for Public T&M Companies

Global T&M Industry Announced Deal Volume and Value

Source: Capital IQ, Mergermarket, press releases
Notes: M&A analysis based on deals announced and/or closed during the respective periods. Deal value represents aggregate deal value for disclosed transactions for the time periods noted on the above graph