Sensata Divests Qinex Business; Eyes Funding Electrification & Insights/IoT

Sensata Technologies Holding PLC ST sold its Qinex semiconductor thermal test and control business to Boyd Corporation for $219 million, including a small secondary closing.
Sensata's Qinex business manufactures semiconductor burn-in test sockets and thermal control solutions.
Sensata plans to continue manufacturing Qinex's products via a contract manufacturing deal with Boyd for 6 to 12 months.
Before this sale, Qinex mainly operated as a stand-alone business.
ST held cash and equivalents of $1.61 billion as of March 31, 2022.
"Qinex performs well for customers and has contributed nicely to the rest of Sensata over the years. However, it does not align to our growth strategies and will be better positioned as part of Boyd to further expand its semiconductor testing and thermal management capabilities. Additionally, by divesting Qinex we can further fund our capital deployment initiatives, including funding our growth vectors of Electrification and Insights/IoT," commented CEO Jeff Cote.
Price Action: ST shares are trading lower by 2.32% at $40.35 on the last check Friday.