Sensata Sells Qinex Semiconductor Business for $1.1B

TL;DR

Sensata selling Qinex for $1.1B to Bain Capital, focusing on core biz.

AI Summary

Sensata Technologies Holding plc announced on August 29, 2024, that it has entered into a definitive agreement to sell its Qinex semiconductor business to an affiliate of Bain Capital for approximately $1.1 billion. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.

Why It Matters

This divestiture allows Sensata to focus on its core sensing and electrification businesses, potentially leading to improved profitability and strategic alignment.

Risk Assessment

Risk Level: medium — The sale is subject to customary closing conditions, and the integration of the proceeds into Sensata's core business will be a key factor.

Key Numbers

• $1.1B — Sale Price (Amount Sensata Technologies Holding plc will receive for its Qinex semiconductor business.)

Key Players & Entities

• Sensata Technologies Holding plc (company) — Seller
• Qinex (company) — Business being sold
• Bain Capital (company) — Buyer
• 1.1 billion (dollar_amount) — Sale price

FAQ

Key Financial Figures

• $165 m — tal cash consideration of approximately $165 million, subject to working capital and o
• $95 million — on-cash pre-tax charge of approximately $95 million in the third quarter of 2024. The Compa
• $95 m — n-cash, pre-tax charge of approximately $95 million, relating to the sale of Insights
• $920 million — arter is expected to be in the range of $920 million to $950 million. 2 SIGNATURES Purs
• $950 million — d to be in the range of $920 million to $950 million. 2 SIGNATURES Pursuant to the requ

Filing Documents

• st-20240829.htm (8-K) — 30KB
• 0001477294-24-000162.txt ( ) — 183KB
• st-20240829.xsd (EX-101.SCH) — 2KB
• st-20240829_def.xml (EX-101.DEF) — 15KB
• st-20240829_lab.xml (EX-101.LAB) — 26KB
• st-20240829_pre.xml (EX-101.PRE) — 15KB
• st-20240829_htm.xml (XML) — 3KB

06

Item 2.06 Material Impairments. In August 2024, affiliates of Sensata Technologies Holding plc (the "Company") entered into a purchase agreement (the "Purchase Agreement") to sell its Insights Business ("Insights") to an affiliate of Balmoral Funds, a private equity firm in Los Angeles, California, in exchange for total cash consideration of approximately $165 million, subject to working capital and other customary adjustments. The Company expects to close the sale of Insights in 2024, subject to regulatory and other closing conditions. In connection with entering into the Purchase Agreement, the Company expects to record a non-cash pre-tax charge of approximately $95 million in the third quarter of 2024. The Company does not anticipate that this charge will result in future cash expenditures.

01

Item 7.01 Regulation FD Disclosure. As described in Item 2.06 above, the Company expects its third quarter 2024 net income to be impacted by the expected non-cash, pre-tax charge of approximately $95 million, relating to the sale of Insights. Notwithstanding this charge, the Company reaffirms its third quarter 2024 financial guidance relating to Revenue, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS, as discussed in its press release dated July 29, 2024. To reflect the sale of Insights, revenue for the fourth quarter is expected to be in the range of $920 million to $950 million. 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SENSATA TECHNOLOGIES HOLDING PLC /s/ Richard Siedel Date: September 3, 2024 Name: Richard Siedel Title: Vice President and Chief Accounting Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR