NPR : News

Filed Under:

The $7 Billion Tech Acquisition You Haven't Heard Of

While most of us were distracted waiting for a gold iPhone — gold! — the billionaire industrialist Koch brothers quietly made a deal to acquire an electronics company for $7.2 billion. The company they bought? Molex.

Molex makes component parts, which doesn't sound sexy. But it, like other component-part companies, is responsible for something critically important to our devices. Molex makes plugs and plug parts found in almost every computer. Its most well-known product is the Molex connector. It connects your computer power supply to drives and devices inside the computer, and is well known among techies.

To put the acquisition in perspective, Molex cost more than seven times the $1 billion Facebook paid for Instagram.

And not only is it a big purchase — Koch Industries is paying a 31 percent premium over last Friday's closing stock price for Molex — it's also a surprising one. The International Business Times reports:

"Analysts, who were quoted by Reuters, expressed surprise about the healthy valuation of the company and the buyer. 'The precise motivation of the acquisition is unclear to us at this juncture,' Amitabh Passi and James Hillier, analysts at UBS, were quoted as saying."

Incidentally, the news that captured our attention — Apple — and the news that didn't — Molex — are connected. Because Molex specializes in little-notice devices like connectors, antennas and switches, it's also a key Apple supplier. So if you have a smartphone, some Molex products are probably in your pocket.

Molex will keep its name; the deal is expected to close by the end of the year.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

How Do You Spot A Nonconformist? You Can Start With Their Internet Browser

According to Adam Grant, a person's preferred browser is one way to tell whether they accept or reject the defaults in their life. His new book is called Originals: How Non-Conformists Move the World.
NPR

After Introducing Changes, Keurig Sales Continue To Fall

Despite America's high coffee consumption, Keurig reported disappointing sales this week. Even during its popular holiday selling period, the numbers haven't perked up in recent years.
NPR

Clinton And Sanders Test New Campaign Tactics Ahead Of New Hampshire

Hillary Clinton is trailing Bernie Sanders in New Hampshire. The way they're campaigning in that state ahead of Tuesday's primary tells you something about how they're positioned in the race.
NPR

Super Bowl 50 Tightens Cybersecurity

This year's Super Bowl will be held in the most technologically advanced stadium in the world. FBI special agent John Lightfoot talks to NPR's Rachel Martin about the threat of cyber attacks.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.