Ametek Nears $1.5 Billion Deal for Abaco Systems

(Bloomberg) -- Ametek Inc. is in advanced talks to buy Abaco Systems Inc. for as much as $1.5 billion, according to people with knowledge of the matter.

The maker of electronics instruments is in discussions with current owner Veritas Capital for the Huntsville, Alabama-based company, said the people, who asked not to be identified because they weren’t authorized to speak publicly.

A final decision hasn’t been made and Veritas could decide to sell to another buyer or keep the business, the people said. The decision could come as early as this week, they said.

Representatives for Ametek, Veritas and Abaco couldn’t be reached for comment.

Abaco, then called GE Intelligent Platforms, was bought by Veritas in December 2015 for an undisclosed sum. The company operates in a range of sectors, including aviation systems, information processing and network communications, according to its website.

Veritas, which raised its first fund in 1998, focuses its deals on businesses that interact with the government, including in aerospace, defense and technology, according to its website. The firm announced in January that it was acquiring Perspecta Inc. in a deal valued at $7.1 billion and in February that it was part of a deal for Cubic Corp.

Ametek has a workforce of 17,000 in more than 150 locations in 30 countries, according to its website. The stock climbed 75% in the past year, compared with the 62% increase in the S&P 500 index, giving the Berwyn, Pennsylvannia-based company a market value of $27.9 billion.

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