MTS Systems, a global supplier of high-performance test systems and position sensors, entered into a definitive purchase agreement to acquire 100% of PCB Group for $580 million through a merger of a newly formed subsidiary of MTS into PCB, with PCB surviving as a wholly-owned subsidiary of MTS after the closing.

MTS intends to finance the transaction with a combination of equity and new debt financing. MTS also intends to refinance its existing credit facility and have an available credit facility of $100 million after completion of the transaction. MTS said it has obtained a customary commitment for new debt financing from JPMorgan Chase in support of the transaction.

J.P. Morgan Securities acted as the exclusive financial advisor to MTS and provided a fairness opinion to MTS board of directors. Simpson Thacher & Bartlett acted as legal advisor to MTS. MTS engaged Accenture to assist with due diligence and integration planning. BlackArch Partners acted as financial advisor for PCB.