Arcline’s Arxis Closes $890 Million Dual Buy

Arxis, a portfolio company of Arcline Investment Management, has expanded through the acquisitions of Omnetics Connector and MagCanica. The combined purchase price for both companies is approximately $890 million, representing 12 times the estimated FY 2027 adjusted EBITDA of Omnetics and MagCanica.

Omnetics designs and manufactures micro-miniature and nano-miniature connectors and interconnect systems used in aerospace, defense, space, medical, and industrial applications. The company’s Nano-D-Sub and Micro-D-Sub connectors — compact, high-density interconnect devices built to the D-subminiature standard — are specified in critical defense and space platforms where size, weight, and the consequences of failure are governing constraints. The company’s connectors are found on long-tenured programs, where established suppliers hold qualification positions that are highly difficult for competitors to displace.Omnetics, led by President Gary Jacobs, was founded in 1984 and is headquartered in Minneapolis. “Arxis shares our deep commitment to innovation, quality, and the customers who rely on us,” said Mr. Jacobs. “Joining Arxis gives us the resources and platform to accelerate investment in our products, our technology, and our people, while continuing to deliver high performance and reliability to our customers.”

“Omnetics is exactly the kind of business we built Arxis to own,” said Kevin Perhamus, the president and CEO of Arxis. “For over 40 years, the company has been the trusted standard in Nano- and Micro-D-Sub connectors for applications where failure is not an option, earning preferred-source positions on long-tenured programs that are highly difficult to replicate.”

MagCanica designs and manufactures non-contact torque sensors that measure torque on rotating shafts without physical contact — a key distinction for high-speed and high-temperature applications where conventional contact-based measurement would be impractical or unreliable. The company’s magnetomechanical sensor systems operate at rotational speeds exceeding 140,000 rpm and have been certified to military specifications for production deployment on hovercraft turboshaft engines for the U.S. Army and U.S. Navy in collaboration with Sikorsky, a division of Lockheed Martin.

MagCanica’s sensors are also installed across every major motorsport series — Formula 1, Formula E, IndyCar, NASCAR, the WEC Hypercar class, IMSA GTP, and cross-country rally — in applications where real-time torque data is used for powertrain management. San Diego-headquartered MagCanica, led by Co-founder and President Sami Bitar was founded in 2000.

“MagCanica’s non-contact torque sensors are highly complementary to our existing military flexible driveshaft capabilities and address a growing need across aerospace and defense for real-time monitoring of mission-critical rotating systems,” said Mr. Perhamus. “We see clear runway to cross-sell this technology alongside the Arxis portfolio where operators require precise visibility into performance under heavy loads.”

“The addition of Omnetics and MagCanica reinforces the power of the Arxis–Arcline partnership in creating a repeatable engine of value creation for Arxis as a next-generation industrial compounder,” said Rajeev Amara, the CEO of Arcline. “Arcline provides Arxis with institutional capabilities that complement Arxis’ operating expertise, including research-driven market mapping, proprietary sourcing access, disciplined underwriting, and capital allocation expertise. These capabilities, which are difficult for a standalone strategic acquiror to replicate, expand Arxis’ addressable acquisition universe and strengthen its ability to acquire high-quality businesses with leading positions on long-duration platforms.”

The global aerospace and defense connectors market, the primary end market for Omnetics, was valued at $4.3 billion in 2026 and is projected to reach $5.5 billion by 2031, according to Mordor Intelligence, representing a compound annual growth rate (CAGR) of 5.1%. Mordor identifies sustained investment in defense-platform electrification, space applications — growing at an 8.3% CAGR within the connector market — and avionics modernization as the primary demand drivers. The miniaturization requirements that define Omnetics’ Nano- and Micro-D-Sub product line are amplified by the proliferation of small satellites, unmanned aerial vehicles (UAVs), and next-generation wearable soldier systems, all of which place a premium on the density and reliability that sub-miniature connectors provide.

Today, with the acquisitions of Omnetics and MagCanica, Arxis has completed 34 acquisitions, operates 72 manufacturing facilities, employs approximately 5,750 people, and generates annual revenue of $1.6 billion. Arxis is headquartered near Hartford in Bloomfield, Connecticut.

Arcline’s build-up of Arxis began in July 2019 with the acquisition of Integrated Polymer Solutions. The firm’s electronics strategy accelerated in November 2020 with the acquisition of Evans Capacitor, a Rhode Island-based manufacturer of high-reliability capacitors, followed in December 2020 by the acquisition of Ohmega Technologies, a California-based producer of embedded thin-film resistive materials.

In January 2021, Arcline formed Quantic Electronics by combining Evans Capacitor, Ohmega Technologies, and newly acquired TRM Microwave. Quantic expanded rapidly through a series of acquisitions that included Planar Monolithics (March 2021), Union Technology (June 2021), BEI Precision (August 2021), and ECI Transcon (September 2021).

In July 2022, Arcline formed Qnnect through the acquisition of Custom Interconnects, establishing it as a second electronics platform alongside Quantic. The firm’s largest transaction followed in April 2024 with the $1.8 billion acquisition of Kaman Corporation, adding a major aerospace and defense components manufacturer.

By late 2025, Arcline had assembled a collection of electronics, aerospace, and engineered components businesses and in October 2025 reorganized IPS, Quantic, Qnnect, Kaman, and several other holdings into a single corporation called Arxis. The company filed for an initial public offering in March 2026 and began trading on the NASDAQ under the ticker ARXS in April 2026, raising approximately $1.0 billion.

Arcline makes control investments in companies with recurring revenue models across sectors such as defense and aerospace, industrial and medical technology, life sciences, and specialty materials. The firm targets companies with EBITDA ranging from $10 million to $100 million and enterprise values of up to $1 billion. In March 2023, Arcline closed its third fund with $4.5 billion in capital commitments, following its $2.75 billion second fund closure in January 2021.

William Blair & Company was the financial advisor to Arxis on the Omnetics transaction, and Vermillion Capital was the financial advisor to Omnetics. Kroll Securities was the financial advisor to MagCanica.

The acquisition of MagCanica closed on June 1, 2026, and the Omnetics transaction is expected to close before the end of the third quarter.