Koch will acquire Molex for $7.2 billion
Early last week Koch Industries announced a technology acquisition that will be one of the biggest ever made by the company. Koch will acquire Molex, a maker of electronic components, for $7.2 billion. Reports say that this opportunity will let Koch expand into connector components.
Specifically, Molex sells interconnection systems to automakers, mobile-phone companies and military customers. Some of the company's customers include Apple, which has used the electronic connectors in its iPhone 5.
Co-chairman of the Molex board Fred Krehbiel said in a company press release that it was a difficult decision, but it will bring outstanding benefits to stakeholders and create many opportunities for Molex employees worldwide.
Martin Slark, vice chairman and chief executive officer of Molex, agreed.
"For our customers and employees, this transaction will allow us to build on Molex's proud past and strengthen us for a powerful future," Slark said. "We are excited to work with Koch to continue our track record of growth and investment in people, innovation and technology."
Charles Koch, chairman and chief executive officer of Koch Industries, said that this is an exciting technology acquisition, adding that Molex is a good match for Koch's culture and core capabilities. He added that he is excited for the M&A activity to let both companies work together and take each business "to the next level."
Even with Koch having an annual revenue of $115 billion, situations like this are examples of how technology mergers and acquisitions can benefit businesses of all sizes. To further expand into certain markets, Koch needed the expertise that Molex had established, while with the assistance of Koch, Molex will have the opportunity to reach more customers.