The electrical solution provider nVent Electric (NVT) has agreed to acquire CIS Global LLC for an all-cash deal of approximately $200 million. The deal is expected to be completed by the third quarter of this fiscal year, subject to customary conditions and regulatory approval.
CIS Global provides power and server rack-mount slide products to data centers and networking industries.
nVent’s Enclosures President Joe Ruzynski said, “We are excited about the strong team, technology and innovation at CIS Global. Combined with our Enclosures solutions, we can help data centers across the world improve operational efficiency and optimize energy utilization with leading technologies in heat and power management.”
Ruzynski added, “Our priority after closing will be to serve and grow the CIS Global customer base with innovative solutions.” (See nVent Electric stock analysis on TipRanks)
Following the acquisition announcement news, Rosenblatt Securities analyst Scott Graham maintained a Buy rating on the stock and assigned a price target of $38 (17% upside potential) from $34.
Graham said, “This is NVT’s largest deal in its three-year corporate life, post-spin from Pentair (PNR-Buy). It fits well, expands the company’s IndTech sales, and appears accretive.”
Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The NVT average analyst price target of $38.50 implies 18.6% upside potential from the current levels. Shares have gained 35.3% over the past six months.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on nVent Electric, with 25.7% of investors registered with TipRanks increasing their exposure to NVT stock over the past 30 days.
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