ESCO Technologies (ESE) is trading higher as investors react to a newly announced, large acquisition that materially expands ESCO’s footprint in electrical test and measurement. ESCO agreed to acquire Megger Group Limited from TBG AG for total consideration of about $2.35 billion, pairing Megger with ESCO’s Doble Engineering franchise and positioning the combined platform for rising utility-grid investment demand.

The transaction consideration is structured as approximately $922 million in cash plus 5.10 million ESCO common shares (subject to customary adjustments), making it a stock-and-cash deal that preserves flexibility while still requiring meaningful funding. The acquisition is expected to broaden ESCO’s global utility solutions portfolio and deepen its exposure to recurring test, monitoring, and data-driven asset management workflows across electric power infrastructure.

Along with the deal announcement, ESCO disclosed preliminary fiscal second-quarter 2026 results from continuing operations, including revenue of $309 million and adjusted EPS of $1.91 (GAAP EPS $1.29). That combination—transformational M&A plus an upbeat interim performance snapshot—appears to be driving incremental buying interest as the stock trades near record levels.

Key swing factors now include the financing package for the cash portion, integration planning (especially how Megger and Doble product lines and channels are combined), and the regulatory/closing timeline. ESCO’s next scheduled earnings release is set for May 13, 2026, which could provide updated guidance, additional deal detail, and any early signals on expected synergies and leverage targets.