ESCO Technologies Finalizes $2.3 Billion Acquisition of Megger Group Limited

Key numbers

Deal value	$2.3B
Share of market cap	32.3%
Share of annual revenue	210.0%

Key highlights

• Total transaction value reached approximately $2.3 billion at closing
• Funding structure included $922 million in cash and 5.10 million common shares
• Seller TBG AG secured a designated seat on the ESCO Board of Directors
• Acquisition shares are subject to a 12-month staggered lock-up period
• New credit agreement was established to refinance existing corporate debt

What Is the Deal?

ESCO Technologies Inc. (NYSE: ESE) has successfully closed the acquisition of Megger Group Limited, an England and Wales-based company, from Swiss-owned TBG AG. The transaction, initially announced in April 2026, represents a total investment of approximately $2.3 billion. This acquisition brings Megger into the ESCO fold, significantly expanding the company footprint in the electrical test and measurement industry. The final closing on October 1, 2026, marks the completion of the share purchase agreement, which remains subject to standard post-closing adjustments for net debt and working capital payable in cash.

Deal Structure & Terms

• Consideration comprised of $922 million in cash and 5.10 million shares of ESE common stock
• TBG AG maintains a right to one board seat while holding at least 50% of consideration shares
• Transfer restrictions apply to 100% of shares for six months and 50% for twelve months
• Standstill provisions limit the seller to 24.5% maximum beneficial ownership of common stock
• A new credit agreement replaced the existing facility previously scheduled to mature in 2028

Strategic Rationale

The integration of Megger Group aligns with ESCO objective to strengthen its Utility Solutions Group segment. Megger is a specialist in portable electrical test equipment, providing critical infrastructure monitoring solutions for power utilities, industrial plants, and construction sectors globally. By acquiring Megger, ESCO enhances its portfolio of diagnostic tools used to ensure the reliability and efficiency of electrical power grids. This move scales ESCO existing technical capabilities and expands its geographic reach into international markets where Megger maintains a significant presence in electrical safety and performance testing equipment.

Financial Context

The $2.3 billion acquisition represents a significant capital deployment for ESCO Technologies, which carries a market capitalization of approximately $7.12 billion. With a trailing twelve-month price-to-earnings ratio of 51.01, the company leveraged its equity to fund nearly 40% of the deal value through the issuance of 5.10 million shares. Prior to the acquisition, ESCO reported annual revenues of $1.095 billion. The addition of Megger operations is expected to substantially alter the company revenue profile and segment concentration, positioning Utility Solutions as a primary driver of the group consolidated top-line performance.

Down 5.3% since our story on 2 Oct: $274.95 when we broke it → $260.43 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$263.19
15 Sep	$260.09
16 Sep	$258.98
17 Sep	$260.14
18 Sep	$265.92
21 Sep	$262.41
22 Sep	$261.81
23 Sep	$266.19
24 Sep	$268.42
25 Sep	$268.09
28 Sep	$266.04
29 Sep	$265.69
30 Sep	$265.11
1 Oct	$269.92
2 Oct	$274.95
5 Oct	$271.92
6 Oct	$268.22
7 Oct	$256.90
8 Oct	$254.06
9 Oct	$257.83
12 Oct	$261.54
13 Oct	$260.43

ESCO TECHNOLOGIES INC · financial snapshot

Share price	$274.95
Market cap	$7.1B
Revenue (annual)	$1.1B
P/E (TTM)	51.0×
1-month price change	+2.77%
Sector	TechnologyScientific & Technical Instruments

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.