Recently, global connector giant Molex and Smiths Group have officially reached an agreement to acquire Smiths Interconnect for 1.3 billion pounds. This is not only another significant move by Molex in the high-end sector but also brings new variables to the competitive landscape of the aerospace, defense and medical interconnect markets. From the transaction details to the strategic significance, and to Molex’s previous layout and preparations, the logic behind this acquisition is worth in-depth analysis.
01
Transaction Insight
The Core Value Behind the £1.3 Billion Acquisition
The core logic of this acquisition can be clearly dissected through key information, ranging from transaction valuation to the strength of the target business.
The valuation level reflects the scarcity of assets: Public information shows that the transaction price of 1.3 billion pounds corresponds to Smiths Interconnect’s core EBITDA of 86.1 million pounds for the fiscal year 2025, with a valuation multiple of 15.1 times. It is worth noting that this EBITDA figure has excluded the U.S. subsystem business that Smiths Group just sold in October 2025, only reflecting the core business profitability of Interconnect. This adjustment also makes the 15.1 times valuation more capable of demonstrating the scarcity of its business, reflecting the recognition of the capital market on Smiths Interconnect’s technological barriers and market position in its niche field.
High-end business forms the core value: From the perspective of business layout, Smiths Interconnect has a remarkable global service capability. Its business covers 12 countries around the world and has 21 sales, R&D and manufacturing bases, which can quickly respond to the customized demands of customers in different regions. In terms of core products, microwave, optical, RF connectors and subsystems all focus on high-end scenarios and are widely used in critical mission areas such as satellite communication, radar systems, and high-end medical equipment. It especially has technical advantages in stability in extreme environments and high-speed signal transmission.
Clear strategic enhancement intention: For Molex, this acquisition is by no means a simple expansion in scale, but rather a precise enhancement of its high-end product portfolio. Molex CEO Joe Nelligan stated, “Smiths Interconnect’s technology and products will significantly strengthen the platform we established through the acquisition of AirBorn last year. Combined with Molex’s global scale, technological strength, and financial stability, this transaction will help us rapidly expand our aerospace and defense business and support our customers in innovative ways.”
02
Strategic Positioning
Why did Molex anchor on this acquisition?
For Molex, this acquisition is not an accident but a precise move to address the shortcomings in its high-end interconnect business, which is reflected in three dimensions.
Fill the technical gaps. In the aerospace and defense applications, Smiths Interconnect has a deep technical reserve, which will directly make up for the deficiency of Molex’s original product line in the high-end market in these fields, forming a strong technical synergy effect; in the medical application field, Smiths Interconnect’s high-end interconnection solutions have been recognized by the industry, which can effectively assist Molex in accelerating its entry into the high-end medical equipment track.
Break through the market access barriers at the market level. The aerospace, defense and high-end medical interconnection markets have extremely high requirements for product reliability and have long been dominated by a few enterprises. New entrants face high access barriers. Through acquisition, Molex can directly take over Smiths Interconnect’s mature customer resources and necessary industry qualifications, quickly open up the high-end market space, and avoid the market cultivation cycle from scratch.
Enhance global collaboration efficiency at the operational level. Smiths Interconnect has 21 R&D and manufacturing bases worldwide, which can be integrated with Molex’s existing global network to achieve synergy. For instance, manufacturing bases in Europe and North America can shorten the delivery cycle for local customers. By integrating resources, Molex can optimize its global supply chain and production layout, thereby better serving local customers, improving operational efficiency, and launching customized products that meet regional market demands more quickly.
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The acquisition of AirBorn was a prelude to the continuation of the layout.
The acquisition of Smiths Interconnect is actually a continuation of Molex’s high-end interconnect strategy. The acquisition of AirBorn by the end of 2024 has already set the stage for this.
In December 2024, Molex officially completed the acquisition of AirBorn. Public information shows that AirBorn is a globally renowned enterprise in the field of rugged connectors and electronic components. Its core business focuses on mission-critical markets such as aerospace, defense, and space exploration. It has core products like VPX power systems and nine manufacturing plants located in the United States, the United Kingdom, and Canada.
This acquisition provides Molex with two key supports: first, a breakthrough in market position, as Molex has for the first time entered the top ten of the global military/aerospace connector market, breaking its previous weak position in this field; second, organizational capability reserves, as the former CEO of AirBorn, Michael Cole, led the team to establish the Molex Aerospace and Defense business division, accumulating practical experience for the subsequent integration of Smiths Interconnect’s business.
04
Industry Signals
Integration, Focus, and Ecological Competition
This transaction also reflects three major trends in the current global interconnect industry, which deserve the industry’s attention.
The acceleration of industry consolidation. In recent years, leading enterprises in the global interconnect industry have frequently consolidated their advantages through mergers and acquisitions. For instance, Amphenol’s acquisition of Rochester Sensors has strengthened its technological layout. Molex’s consecutive acquisitions of AirBorn and Smiths Interconnect clearly aim to build a differentiated competitive edge in the high-end market by “filling in the gaps and expanding advantages”. This trend may further compress the survival space of small and medium-sized enterprises.
Strategic focus on the industrial chain. The sale of Smiths Interconnect is a key step for Smiths Group in advancing its 2025 strategy. Its core direction is to transform into a “high-performance industrial engineering company”, concentrating resources on core businesses with higher gross margins such as aircraft engine components and industrial sensors. This also reflects that each link in the industrial chain is focusing on its most advantageous areas.
The value of one-stop service is highlighted. For downstream customers in the aerospace, medical and other fields, the integrated Molex can provide a more comprehensive product portfolio and technical support. For example, aerospace customers can obtain a one-stop solution of “connectors + subsystems” from Molex without having to deal with multiple suppliers, thereby improving procurement efficiency and service stability.
Overall, this £1.3 billion acquisition is not only a strategic choice for the two enterprises but also affects the industrial nerves of the high-end interconnect field. Besides paying attention to the transaction itself, the actual implementation effects of Molex on the subsequent technical synergy, customer resource integration and capacity optimization of Smiths Interconnect are also worth watching, as this will further influence the competitive landscape of the high-end interconnect market.