The Carlyle Group and PAI Partners have entered into exclusive negotiations with Schneider Electric to acquire a majority stake in Custom Sensors & Technologies (CST). The transaction is structured on an equal basis between Carlyle Europe Partners IV and PAI Europe VI, with Schneider Electric retaining approximately 30% of the capital and the management team holding around 2%. The operation is a complex carve-out from Schneider Electric, where CST was previously a dedicated business unit. The strategic rationale for the acquisition focuses on CST's high-quality reputation and its leading position in the attractive and growing market for mission-critical sensing products. The partnership aims to create further value by leveraging the acquirers' significant experience in the industrial and aerospace sectors, as well as their operational expertise in driving growth through acquisitions. The acquisition is supported by a covenant-lite financing structure, representing nearly two-thirds of the total transaction amount. This investment marks the start of the investment periods for both Carlyle Europe Partners IV and PAI Europe VI, highlighting the strategic importance of the asset in the upper-mid to large-market European buyout space.

The transaction values INNOVISTA (EX CST) at an EV/Revenue multiple of LOGIN.

This transaction is part of the TMT (Tech, Media, Telecom) industry, which currently tracks an average EBITDA multiple of 13.0x since the beginning of 2026, 14.6% decrease compared to 2025. This data is based on the contribution of our growing community, composed of M&A and private equity professionals.