Arxis Announces Acquisitions of Omnetics Connector Corporation and MagCanica Inc.

Rhea-AI Summary

Arxis (NASDAQ: ARXS) announced acquisitions of Omnetics Connector Corporation and MagCanica, expanding its Electronic Components segment.

The combined purchase price is about $890 million, equal to 12x FY27 estimated adjusted EBITDA. Omnetics is an all-stock deal expected to close in Q3 2026; MagCanica closed June 1, 2026 in an all-cash transaction.

Positive

• Two acquisitions expand Arxis' Electronic Components segment portfolio
• Combined purchase price of approximately $890 million at 12x FY27 estimated adjusted EBITDA
• MagCanica acquisition closed on June 1, 2026 in all-cash deal
• Omnetics acquisition structured as all-stock transaction, aligning seller with public equity

Negative

• Omnetics acquisition remains subject to regulatory approvals and closing conditions

News Market Reaction – ARXS

-0.60%

-0.60% Session close to close

In the Jun 2 session, ARXS declined 0.60%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds two sizeable acquisitions—Omnetics and MagCanica—with a combined price of abo...

Analysis

This announcement adds two sizeable acquisitions—Omnetics and MagCanica—with a combined price of about $890 million, valued at 12x FY27 estimated Adjusted EBITDA. The deals deepen Arxis’s presence in high‑reliability electronic components and non-contact torque sensing, both within its Electronic Components segment. In context of recent record Q1 results, IPO proceeds, and prior Micro-Tronics acquisition, investors may watch integration progress, segment margins, and future M&A pacing as key indicators.

Key Figures

Combined purchase price: $890 million Valuation multiple: 12x FY27 estimated adjusted EBITDA Omnetics consideration: All-stock transaction +3 more

6 metrics

Combined purchase price $890 million Omnetics and MagCanica acquisitions combined price

Valuation multiple 12x FY27 estimated adjusted EBITDA Combined purchase price metric

Omnetics consideration All-stock transaction Acquisition structure subject to lockup provisions

MagCanica consideration All-cash transaction Acquisition of MagCanica completed June 1, 2026

Expected close timing Third quarter 2026 Expected closing period for Omnetics acquisition

MagCanica closing date June 1, 2026 Date MagCanica acquisition was completed

Historical Context

2 past events · Latest: May 27 (Positive)

Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
May 27	Earnings results	Positive	+17.8%	Record Q1 2026 results, strong growth and new full-year guidance.
May 14	Earnings scheduling	Neutral	-4.2%	Announcement of timing for Q1 2026 earnings release and webcast.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows a strong positive reaction to fundamental earnings strength, while more procedural announcements have seen mixed or negative moves.

Recent Company History

Over the past weeks, Arxis has highlighted strong fundamentals and active M&A. On May 27, 2026, it reported record Q1 2026 results with revenue of about $459 million, significant year-over-year growth, and robust Adjusted EBITDA, which drove a 17.81% price gain. Earlier, on May 14, 2026, the simple scheduling of its earnings release and webcast coincided with a -4.18% move. The company also completed a large IPO, repaid debt, and acquired Micro-Tronics, underscoring a consistent acquisition-driven strategy that today’s Omnetics and MagCanica deals extend.

Key Terms

definitive agreement, all-stock transaction, lockup provisions, all-cash transaction, +2 more

6 terms

definitive agreement financial

"today announced it has entered into a definitive agreement to acquire Omnetics"

A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.

all-stock transaction financial

"Arxis is acquiring Omnetics in an all-stock transaction (subject to lockup provisions)"

An all-stock transaction is a deal where one company acquires another using only its own shares instead of cash or other assets. For investors, this means exchanging ownership stakes rather than cash, which can affect the value and control of the companies involved. It often signals a focus on growth and can influence the stock prices of both companies.

lockup provisions financial

"all-stock transaction (subject to lockup provisions), reflecting the Omnetics shareholders'"

Lockup provisions are contractual limits that prevent company insiders and early investors from selling their shares for a set period after a stock offering or major corporate event. They matter to investors because they temporarily restrict the number of shares that can enter the market—like a “do-not-sell” sticker—reducing immediate supply and helping stabilize the stock price until the restriction expires.

all-cash transaction financial

"Arxis completed its acquisition of MagCanica in an all-cash transaction."

An all-cash transaction is a deal where the full purchase price is paid immediately in cash or cash equivalents, rather than through financing or installment payments. For investors, this type of transaction often indicates a quick, straightforward sale and can signal confidence from the buyer, potentially affecting the value and perception of the involved assets.

adjusted EBITDA financial

"The combined purchase price is approximately $890 million, representing 12x FY27 estimated adjusted EBITDA."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-contact torque sensors technical

"MagCanica, Inc. ("MagCanica"), a designer and manufacturer of non-contact, high-precision torque sensors"

Non-contact torque sensors measure the twisting force (torque) on a shaft without touching it, using magnetic, optical, or similar remote methods. Think of them like a camera that reads how hard something is turning instead of grabbing it; that avoids wear and lets devices run faster and more reliably. Investors care because these sensors can lower maintenance costs, extend equipment life, enable higher-performance electric motors and automation, and support predictive maintenance and quality control.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BLOOMFIELD, Conn., June 2, 2026 /PRNewswire/ -- Arxis, Inc. (NASDAQ: ARXS) (the "Company" or "Arxis"), a publicly-traded industrial compounder formed in partnership with Arcline Investment Management ("Arcline"), today announced it has entered into a definitive agreement to acquire Omnetics Connector Corporation ("Omnetics"), a leading designer and manufacturer of proprietary high-reliability Micro-D-Sub and Nano-D-Sub connectors and interconnect assemblies used in critical defense and space, commercial aerospace, and medical applications.

Omnetics, headquartered in Minneapolis, Minnesota, maintains deeply embedded positions across leading defense and space, commercial aerospace, and medical technology platforms where size, weight, and reliability are mission critical. Omnetics is currently privately held and owned by its long-term shareholders.

In addition, Arxis announced the acquisition of MagCanica, Inc. ("MagCanica"), a designer and manufacturer of non-contact, high-precision torque sensors that operate under extreme conditions. MagCanica was previously owned by its founders and employees.

The acquisitions reflect the differentiated value of the Arxis–Arcline partnership. Arcline provides Arxis with institutional capabilities that complement Arxis' operating expertise, including research-driven market mapping, proprietary sourcing access, disciplined underwriting, and capital allocation expertise. These capabilities, which are difficult for a standalone strategic acquiror to replicate, expand Arxis' addressable acquisition universe and strengthen its ability to acquire high-quality businesses with leading positions on long-duration platforms.

"The addition of Omnetics and MagCanica reinforces the power of the Arxis–Arcline partnership in creating a repeatable engine of value creation for Arxis as a next-generation industrial compounder," said Rajeev Amara, Chairman of Arxis and CEO of Arcline.

The combined purchase price is approximately $890 million, representing 12x FY27 estimated adjusted EBITDA.

Omnetics Transaction

Under the terms of the agreement, Arxis is acquiring Omnetics in an all-stock transaction (subject to lockup provisions), reflecting the Omnetics shareholders' requirement to receive public company stock over cash consideration and reinforcing one of the key drivers and benefits of Arxis becoming a public company.

"Omnetics is exactly the kind of business we built Arxis to own. For over 40 years, the company has been the trusted standard in Nano- and Micro-D-Sub connectors for applications where failure is not an option, earning preferred-source positions on long-tenured programs that are highly difficult to replicate," said Kevin Perhamus, President and Chief Executive Officer of Arxis.

Gary Jacobs, President of Omnetics, said, "Arxis shares our deep commitment to innovation, quality, and the customers who rely on us. Joining Arxis gives us the resources and platform to accelerate investment in our products, our technology, and our people, while continuing to deliver high performance and reliability to our customers."

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the third quarter of 2026.

Upon closing, Omnetics will operate within Arxis' Electronic Components segment.

William Blair & Company, L.L.C. is serving as financial advisor to Arxis and Vermillion Capital is serving as advisor to Omnetics.

MagCanica Transaction

On June 1, 2026, Arxis completed its acquisition of MagCanica in an all-cash transaction.

"MagCanica's non-contact torque sensors are highly complementary to our existing military flexible driveshaft capabilities and address a growing need across aerospace and defense for real-time monitoring of mission-critical rotating systems," said Kevin Perhamus. "We see clear runway to cross-sell this technology alongside the Arxis portfolio where operators require precise visibility into performance under heavy loads."

MagCanica will operate within Arxis' Electronic Components segment.

Kroll Securities served as financial advisor to MagCanica.

About Arxis
Arxis is a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components for aerospace and defense, medical technology, and specialized industrial markets. Leveraging significant intellectual property and world-class engineering and operational capabilities, Arxis designs and delivers innovative solutions that address its customers' most complex performance needs. Arxis is a portfolio company of Arcline Investment Management. For more information, visit www.arxis.com.

About Arcline Investment Management
Arcline Investment Management is a growth-oriented private equity firm with over $30 billion in assets under management. Arcline seeks to build the next generation of Industrial Compounders – market-leading, non-disruptible industrial platforms designed to consistently grow earnings over decades. For more information visit www.arcline.com.

About Omnetics Connector Corporation
Founded in 1984, Omnetics designs and manufactures micro-miniature and nano-miniature high reliability connectors and interconnect systems for aerospace, defense, space, medical and industrial customers worldwide. Since its inception, Omnetics has been at the forefront of innovation and excellence in the world of connectors and interconnect solutions. For more information, visit www.omnetics.com.

About MagCanica Inc.
Founded in 2000, MagCanica designs and manufactures non-contact, high-precision torque sensors used in high-performance rotating systems worldwide. For more information, visit www.magcanica.com.

Contacts

Investors
ir@arxis.com
+1 860-243-7100 (Select 1 for Arxis)

Media
Kate Thompson / Tim Ragones / Alexander Wolfsohn
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may contain words and terms such as: "anticipate," "could," "believe," "continue," "expect," "estimate," "forecast," "ongoing," "project," "seek," "predict," "target," "will," "intend," "plan," "look ahead," "optimistic," "potential," "guidance," "may," "should," or "would" and other words and terms of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about expected 2027 sales and EBITDA margins, future accretion, anticipated benefits of the acquisition, financing sources, the expected timing for closing the acquisition the Omnetics acquisition and other matters. These statements are only predictions, and such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. No forward-looking statement can be guaranteed. Risks and uncertainties include, but are not limited to: (i) the risk that the proposed acquisition may not be completed in a timely manner or at all, or if it is completed, that the expected benefits of the proposed acquisition may not be realized, (ii) the failure to satisfy the conditions to the consummation of the proposed acquisition, including the receipt of certain regulatory and other approvals, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement between the parties and (iv) unanticipated difficulties or expenditures relating to the acquisition, the response of business partners and competitors to the announcement of the proposed acquisition, potential disruptions to current plans and operations and/or potential difficulties in employee retention as a result of the announcement and pendency of the acquisition. The actual financial impact of the proposed acquisition may differ from the expected financial impact described in this press release. The foregoing list of risk factors is not exhaustive. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Arxis' business, particularly those identified in the risk factor discussion in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Arxis undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made.

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SOURCE Arxis

FAQ

What acquisitions did Arxis (NASDAQ: ARXS) announce on June 2, 2026?

Arxis announced definitive agreements to acquire Omnetics Connector Corporation and MagCanica. According to Arxis, Omnetics designs high-reliability connectors, while MagCanica produces non-contact torque sensors for extreme conditions, both serving defense, space, aerospace, and related applications.

How much is Arxis (ARXS) paying for Omnetics and MagCanica and what is the valuation multiple?

Arxis disclosed a combined purchase price of about $890 million for Omnetics and MagCanica. According to Arxis, this represents 12x FY27 estimated adjusted EBITDA, reflecting expectations for future earnings from the acquired businesses.

Is the Omnetics acquisition by Arxis (ARXS) an all-stock deal and when will it close?

Omnetics is being acquired in an all-stock transaction, subject to lockup provisions. According to Arxis, the deal is subject to customary regulatory approvals and closing conditions and is expected to close in the third quarter of 2026.

When did Arxis (ARXS) complete the MagCanica acquisition and what were the terms?

Arxis completed the MagCanica acquisition on June 1, 2026 in an all-cash transaction. According to Arxis, MagCanica designs non-contact, high-precision torque sensors that operate under extreme conditions, complementing Arxis' existing military flexible driveshaft capabilities.

How will Omnetics and MagCanica be integrated within Arxis (ARXS)?

Both Omnetics and MagCanica will operate within Arxis' Electronic Components segment. According to Arxis, Omnetics brings high-reliability connector solutions, while MagCanica adds torque sensor technology, supporting cross-selling opportunities across aerospace, defense, and other mission-critical applications.

Why does Arxis (ARXS) say the Omnetics and MagCanica deals highlight its partnership with Arcline?

Arxis links the acquisitions to institutional capabilities provided by Arcline, including research-driven market mapping and disciplined underwriting. According to Arxis, these capabilities expand its acquisition universe and help target high-quality businesses on long-duration platforms.