May 26, 2019 / 12:35 AM / 23 days ago

First Sensor in advanced takeover talks with TE Connectivity

(Reuters) - Germany’s First Sensor AG said on Sunday it is in advanced talks with connector and sensor maker TE Connectivity Ltd regarding a takeover.

The company, which makes electronic sensors used in the industrial, medical and automotive sectors, said it has received a legally non-binding expression of interest with an indicative offer price of about 28 euros ($31.37) per share, adding that it is examining its options.

First Sensor said it cannot predict whether TE Connectivity will make a takeover offer.

In a statement, TE Connectivity confirmed the talks and added that an “exclusivity agreement” had been signed between TE Connectivity and First Sensor. The company said it would reveal further information at a later stage.

Bloomberg reported on Saturday that TE Connectivity was nearing a deal to buy the German company.

In October, First Sensor’s main investor, Deutsche Private Equity (DPE), said it was considering selling its 36 percent stake in the company.

DPE was considering options for First Sensor after receiving interest in the company, in which it first invested in 2011, Reuters reported late last year.

First Sensor has a number of rivals in the new market for light detection and ranging (LiDAR) sensors, which have potential to be the “eyes” of driverless cars. It also makes cameras for current generation advanced automotive collision detection systems.

Other LiDAR players include auto parts suppliers Continental AG, Delphi Automotive, ZF Friedrichshafen AG, chipmakers Infineon Technologies AG and Texas Instruments, and specialist sensor makers Velodyne and Quanergy, among others. Some of these companies are First Sensor customers.

Reporting by Kanishka Singh in Bengaluru; Editing by Dan Grebler and Susan Thomas

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