Passive electronic components manufacturer AVX has signed a definitive agreement to acquire the transportation, sensing and control (TS&C) unit of UK company TT Electronics.

Under the deal, AVX will acquire the division for a consideration of $155.5 million in cash, subject to normal working capital adjustments at closing. The deal still needs to be approved by the TT Electronics shareholders and also need to undergo regulatory approvals.

TT Electronics' TS&C unit designs, develops, manufactures and markets sensors for temperature, position and speed, including exhaust/emission control sensors targeting a broad range of automotive applications.

Operating in nine locations worlwide including India, South Korea and China, the TS&C business generated an estimated $300 million of revenue in the financial year ending December 31, 2016. The unit employs approximately 1,600 people, 180 of whom are in product development.

"The addition of TS&C expands AVX's product offering to include sensors, LED lighting and control modules," said John Sarvis, president and chief executive officer of AVX.