Esco Technologies to Buy Megger Group for $2.35B, Adds $590M Revenue
ESCO will acquire Megger Group for $2.35 billion, comprising $900 million cash and $1.4 billion equity, valuing it at 14x projected 2026 EBITDA and aiming for $60 million in cost synergies. It adds Megger’s test and monitoring business, generating $590 million in 2026 revenue to ESCO’s Utility Solution Group.
1. Acquisition Terms
ESCO will acquire Megger Group from TBG AG for $2.35 billion, funded by $900 million in cash and $1.4 billion in equity. The transaction values Megger at 14x projected 2026 EBITDA and includes lock-up provisions granting TBG a board nomination right.
2. Strategic Rationale and Synergies
Megger adds a complementary portfolio of test, monitoring, and data analytics solutions for utilities and critical electric infrastructure across North America, Europe, and Asia. ESCO expects to realize approximately $60 million in cost synergies within three years and broaden its high-margin Utility Solution Group offerings.
3. Financial Outlook
Megger is projected to generate $590 million in revenue in 2026, enhancing ESCO’s scale in key utility markets. ESCO reported preliminary Q2 fiscal 2026 results with $309 million in revenue, GAAP EPS of $1.29 and adjusted EPS of $1.91, exceeding prior guidance.