New York, June 3, 2026, 19:03 (EDT)
Arxis shares dropped Wednesday after the aerospace and defense supplier, which went public recently, announced two deals to expand its electronic-components business. The acquisitions are worth about $890 million.
Arxis (Nasdaq) shares last traded at $41.33, off $1.60, or 3.7%. The stock has moved between $40.865 and $43.175 so far today. At those levels, Arxis’s market cap stood near $16.96 billion, based on market data.
Arxis shares are falling just weeks after its April IPO, putting pressure on investors to assess its plans for buyouts as a public company. The aero parts maker, based in Bloomfield, Connecticut, brought in about $1.13 billion in its U.S. IPO, selling shares at $28 each.
Arxis said it struck a deal to acquire Omnetics Connector Corp., a Minneapolis supplier of Micro-D-Sub and Nano-D-Sub connectors for defense, space, aerospace and medical uses. The company also said it wrapped up its buy of MagCanica Inc., which makes non-contact torque sensors built for harsh environments.
The company said the combined price is about 12 times projected 2027 adjusted EBITDA. Adjusted EBITDA stands for earnings before interest, taxes, depreciation and amortization, and some other items; companies often use this figure as a stand-in for operating profit, but it’s not net income.
Omnetics will be acquired in an all-stock deal expected to finish in the third quarter, pending regulatory sign-off and usual closing conditions. MagCanica’s acquisition wrapped up June 1, paid entirely in cash. Both companies are set to join Arxis’ Electronic Components segment.
Arxis CEO Kevin Perhamus said Omnetics is the type of business Arxis was “built to own” and highlighted uses “where failure is not an option.” Gary Jacobs, president of Omnetics, said the deal would let the company “accelerate investment.” SEC
Arxis is moving further into high-reliability interconnects with the deal, taking on established aerospace and defense suppliers. Amphenol says it supplies high-performance interconnect systems for commercial aerospace and defense, and TE Connectivity lists aircraft connectors and sensors in its electronic-components lineup.
Arxis is making this move after its first quarterly results as a public company. First-quarter revenue hit $459 million, rising 21% from the same period last year, with adjusted EBITDA up 31% at $175 million. The company also set its 2026 revenue outlook in a range of $1.86 billion to $1.88 billion.
Arxis shares are still trading over the $28 IPO price, but the stock’s fall on Wednesday shows investors are looking past the company’s upbeat deal talk. The drop points to concerns about price, dilution, and integration, rather than just cheering the latest M&A.
The Omnetics deal isn’t a lock. Arxis flagged a list of risks: the buyout might not close, terms could shift, and the expected gains might not show up. It pointed to regulatory hurdles, possible deal breakup, higher costs, business-partner moves and staff retention problems.
For now, the stock trades on how Arxis executes. Arxis has pitched public equity and Arcline’s deal engine as tools to buy niche industrial tech assets, but the question is if those buys will boost earnings fast enough to keep up with the pace.
