ARXS: Checking boxes for the M&A investment thesis; thoughts on Omnetics and MagCanica deals

Research evidence excerpt

ARXS: Checking boxes for the M&A investment thesis; thoughts on Omnetics and MagCanica deals

Aerospace & Defense

FLASH

FLASH: ARXIS, INC. (ARXS) June 2, 2026

ARXS: Checking boxes for the M&A investment thesis; Rating:

thoughts on Omnetics and MagCanica deals Outperform

Price:

What happened? $42.84

ARXS announced their first two deals as a public company, acquiring Omnetics Price Target:

$55Connector Corporation and MagCanica in separate transactions, for a combined % Upside:

purchase price of ~$890M (representing ~12x FY27 adj EBITDA). MagCanica closed 28.4%

on June 1st in an all-cash transaction (~$120M), while Omnetics is an all-stock

Source: FactSet, Wolfe Research

transaction (~$770M) and expected to close in 3Q26. While we were initially Priced as of 06/02/26

surprised to see equity for Omnetics, the press release noted it was a requirement for

Omnetics shareholders.

Omnetics and MagCanica details

Omnetics is headquartered in Minneapolis, MN with ~400 employees. They

are a designer and manufacturer of Micro-D-Sub and Nano-D-Sub connectors Myles Walton, PhD, CFA

and interconnect assemblies with applications in defense and space, commercial mwalton@wolferesearch.com

aerospace, and medical technology. Their proprietary flex pin technology delivers high (617) 675-6840 View Myles’s Research

connectivity with minimal signal interference and resilience in harsh environments. View ARXS Model

MagCanica is based in San Diego, CA and we estimate ~30 employees. They design View Comp Table

precise non-contact torque sensors across aerospace, energy, and industrial end

Greg Dahlberg

markets. gdahlberg@wolferesearch.com

(617) 675-6841

Financial implications

Louis Raffetto

Financial details are limited outside of the purchase price and multiple.