BLOOMFIELD, Conn. - Arxis, Inc. (NASDAQ:ARXS) announced today it has entered into a definitive agreement to acquire Omnetics Connector Corporation, a designer and manufacturer of Micro-D-Sub and Nano-D-Sub connectors for defense, space, aerospace and medical applications, according to a press release statement.
The company also completed the acquisition of MagCanica, Inc. on Sunday, a designer and manufacturer of non-contact torque sensors. The combined purchase price for both transactions is approximately $890 million, representing 12 times FY27 estimated adjusted EBITDA. The acquisition represents a significant expansion for Arxis, which currently holds a market capitalization of $17.69 billion and generated $1.59 billion in revenue over the last twelve months, with an impressive revenue growth rate of 114%.
Omnetics, headquartered in Minneapolis, Minnesota, produces connectors and interconnect assemblies used in defense and space, commercial aerospace and medical technology applications. The company has been privately held by its long-term shareholders.
Arxis is acquiring Omnetics in an all-stock transaction subject to lockup provisions. The transaction requires customary regulatory approvals and is expected to close in the third quarter of 2026. Upon closing, Omnetics will operate within Arxis’ Electronic Components segment.
MagCanica was acquired in an all-cash transaction and was previously owned by its founders and employees. The company manufactures torque sensors that operate under extreme conditions. MagCanica will also operate within Arxis’ Electronic Components segment.
"Omnetics is exactly the kind of business we built Arxis to own," said Kevin Perhamus, President and Chief Executive Officer of Arxis.
Gary Jacobs, President of Omnetics, said joining Arxis provides resources to accelerate investment in products, technology and personnel.
Arxis is a designer and manufacturer of electronic and mechanical components for aerospace and defense, medical technology and specialized industrial markets. According to InvestingPro analysis, the company maintains impressive gross profit margins of 48.58% and is currently trading above its Fair Value. Investors can access 11 additional InvestingPro Tips, including insights on profitability and valuation metrics. The company is a portfolio company of Arcline Investment Management.
William Blair & Company is serving as financial advisor to Arxis and Vermillion Capital is advising Omnetics. Kroll Securities served as financial advisor to MagCanica.
In other recent news, Arxis Inc reported first-quarter 2026 results that surpassed expectations. Revenue was approximately 9% above consensus estimates, and adjusted EBITDA exceeded consensus by about 12%. Following these results, Morgan Stanley raised its price target for Arxis to $50.00, maintaining an Overweight rating. Wells Fargo also initiated coverage with an Overweight rating and a price target of $42.00, highlighting the company’s EBITDA growth. Jefferies began coverage with a Buy rating and set a price target of $42.00, citing Arxis’s diversified compounding strategy and operational analytics system. Wolfe Research initiated coverage with an Outperform rating, setting a price target of $43.00, based on growth tailwinds in Arxis’s core markets. William Blair also rated Arxis as Outperform, noting potential for over 20% upside in shares, driven by high-single-digit organic top-line and double-digit EBITDA growth targets. These developments reflect a positive outlook for Arxis from multiple analyst firms.
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