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Happy Sunday! Hope you’re enjoying your extra hour.
Some big names are expanding their involvement in the Texas startup scene. Cathie Wood’s ARK Invest and Silicon Valley investor Tim Draper announced a partnership with Capital Factory this week, with plans to help promising startups in Texas, California, and Florida find capital and customers. They’re especially interested in fields like robotics, aerospace, defense, and energy.
Said Wood:
Our research led us to Apptronik, where we saw firsthand the role Capital Factory was playing in supporting its growth. This partnership brings Capital Factory’s network, including its government and defense relationships, to St. Petersburg.
Speaking of defense, one of Capital Factory’s past portfolio companies, Dallas-based Firehawk, raised more than $150 million this week to expand its rocket motor manufacturing operations.
That leads this week’s funding roundup, along with a long list of acquisitions across Texas. First, a deal analysis from pH Partners:
CTS Acquisition of Millar Holdings
Transaction
CTS announced completion of its acquisition of Millar Holdings on October 23, 2026, for $50 million, net of cash acquired and debt assumed. Additional contingent consideration is payable if specified financial performance targets are achieved.
Millar designs, develops and manufactures advanced pressure sensing technologies for medical devices, life sciences and industrial applications.
Millar technology and capabilities
Millar’s MEMS, or microelectromechanical systems, sensors measure pressure in medical applications and human and animal research, with designs intended to limit interference with the body’s normal functioning.
TiSense is designed for continuous pressure monitoring for up to 10 years, using an implantable sensor enclosed in tightly sealed titanium.
Beyond pressure, Millar supplies sensors for pH, electrical conductivity, oxidation-reduction potential, and temperature, along with fluid-volume measurement solutions. Applications include clinical devices, agricultural monitoring, brewing, dairy, food safety, wastewater and ocean monitoring.
Millar also helps customers incorporate sensors into their own devices, starting with feasibility testing, customized working designs, and prototypes. Prototyping takes place in an ISO 13485-certified facility and an ISO Class 7 clean room.
The company develops manufacturing processes, evaluates designs through pilot production, and supports clinical trials with device builds, documentation, and regulatory expertise.
After commercial production begins, Millar provides engineering support, maintenance and process improvements.
CTS business and activity leading into the acquisition
CTS began as Chicago Telephone Supply Company in 1896 and now designs and manufactures sensors, actuators and electronic components for original equipment manufacturers. It manufactures in North America, Europe, and Asia, serving medical, industrial, transportation, aerospace and defense, communications and information technology customers.
In Q3 2026, CTS reported key wins involving implantable pacemakers, ultrasound diagnostics, precision measurement and therapeutic applications. Its industrial activity included design wins in data centers, automation, connectivity, digitalization and energy efficiency. Transportation activity included electronic braking, foot controls and a new customer for seat-track position sensing.
CTS reported approximately $564 million in sales for the twelve months ended June 30, 2026. Q3 2026 revenue was approximately $150 million, up 5% year over year. Diversified end markets represented 60% of quarterly sales and grew 7%. Medical sales grew 21% year over year but fell 4% from the preceding quarter.
What Millar adds to CTS
CTS presents Millar as part of its strategy to diversify its business, adding pressure, pH and conductivity sensing alongside integrated design, microfabrication and manufacturing capabilities. Applications include neurological monitoring, cardiovascular care, implantable sensing, and industrial or water quality uses.
CTS expects approximately $30 million in annual revenue from Millar and projects accretion in the second half of 2027.
pH Perspective
Patient monitoring and diagnostics are gaining more “mind share” in the healthcare ecosystem as clinicians try to intervene earlier in disease development. In addition, the explosion of patient monitoring and diagnostics beyond the traditional healthcare system into cash-pay wellness solutions dramatically grows the value of sensing technologies. This transaction supports our thesis that the future of healthcare (and more importantly wellness/longevity) will be driven by combining traditional healthcare solutions with technology advancements in a consumer-friendly solution.
Relevant pH Experience – SemiCon Bio Strategic Collaboration
SemiCon Bio has developed a CMOS-based diagnostic solution capable of single-molecule detection. The company is able to do this through tethering a biological sample to an electrode and detecting the presence of the target (COVID-19, HIV) through a change in electrical impedance in that circuit. This core technology holds the potential to be disruptive across a variety of Life Sciences tools and diagnostics applications.
pH served as an advisor to the company in establishing a joint venture with a leading provider of technology to the plasma donation industry. The JV is currently finalizing an offering that will operate on-site at donation centers and detect pathogen contamination in real time, with the potential to save hundreds of millions of dollars annually.
-Analysis by pH Partners
pH Partners is an Austin-based boutique investment bank focused on Healthcare, Technology, and Consumer markets. Learn more at phpartners.com.
Deal Activity
Austin
Nuclein, a developer of point-of-care rapid PCR diagnostic systems, disclosed $15.65M raised in an ongoing debt offering from undisclosed investors.
Teos Health, a provider of direct-to-consumer membership primary care for Texas adults, raised $3.11M in an equity financing from undisclosed investors.
Greater Texas Market
Firehawk (Dallas), a developer of solid rocket motors and energetics for defense propulsion systems, raised more than $150M in a Series D co-led by Advent International and Rochefort Asset Management with participation from other undisclosed investors and strategic partners.
SpendRule (Dallas), a developer of AI contract enforcement software for health system purchased services, raised $4M in a Seed led by Mark Cuban’s Radical Investments with participation from Zeal Capital Partners. $6M raised to date.
M&A Activity in Texas
Austin
RapidCanvas, a provider of managed AI software and engineering services, acquired Entytle, a developer of AI software that helps industrial equipment manufacturers grow aftermarket parts and service revenue. Financial terms were not disclosed.
Freeit Data Solutions, a provider of data management, IT infrastructure, and cybersecurity solutions, was acquired by Alchemy Technology Group, a Houston-based cybersecurity advisory, consulting, and reseller firm backed by Avance Investment Management. Financial terms were not disclosed.
Swarmer, a developer of drone autonomy and swarm coordination software, agreed to acquire certain intellectual property from Vataga Drone, a Ukrainian developer of first-person-view and interceptor drones. The transaction includes cash and equity, with Vataga’s CEO and 14 R&D team members expected to join Swarmer following closing. Financial terms were not disclosed.
Greater Texas Market
Range Resources (Fort Worth), an independent natural gas and natural gas liquids producer, agreed to be acquired by EQT in an all-stock transaction creating a combined company with an enterprise value of more than $50B. Range shareholders will receive 0.987 EQT shares per share. The transaction is expected to close in Q1 2027.
Vistra (Irving), an integrated power generation and retail electricity company, completed its previously announced acquisition of Cogentrix Energy from funds managed by Quantum Capital Group. The acquisition adds 10 natural gas generation facilities with approximately 5,500 MW of capacity.
Valero (San Antonio), a petroleum refiner and fuels producer, agreed to acquire LYB Houston Hub Holdings, the owner of LyondellBasell’s former Houston refinery site, for $320.5M, subject to closing adjustments. The transaction is expected to close by year-end 2026.
Alamo Group (Seguin), a manufacturer of industrial and vegetation management equipment, acquired Econ Engineering Group, a UK manufacturer of roadway maintenance trucks and equipment, for £120M, approximately $158.7M, subject to customary closing adjustments.
Distribution Solutions Group (Fort Worth), a specialty distributor serving industrial maintenance, manufacturing, and testing markets, completed its previously announced acquisition of GradeEight Holdings, a maintenance, repair, and operations distribution platform operating through Winzer and FastServ Supply.
GrabAGun (Coppell), a technology-driven firearms and outdoor products commerce and distribution company, acquired Camfour, a wholesale distributor of firearms, ammunition, and outdoor products, for approximately $34M in cash, subject to customary adjustments. The transaction closed October 26.
Quest Events (Frisco), a provider of drape, modular scenic, staging, and event furnishings rental solutions, was acquired by Third Space Partners, a private equity firm focused on businesses supporting live events and shared experiences. Financial terms were not disclosed.
Apex Insurance Services (Richardson), a managing general agency platform focused on non-standard auto insurance, was acquired by Rainier Partners. Financial terms were not disclosed.
Complete Legal (Dallas) and A-Legal (Dallas-Fort Worth), providers of litigation and legal document support services, were acquired by First Legal. Financial terms were not disclosed.
Quantum Building Solutions (Dallas-Fort Worth), a provider of building automation, systems integration, and mechanical services, was acquired by Albireo Energy, a building controls and energy services company backed by Huron Capital. Financial terms were not disclosed.
Apache Products (Silsbee), a manufacturer of wooden pallets, was acquired by UFP Packaging, a division of UFP Industries. The acquisition includes the company’s operating assets and 165 employees. Financial terms were not disclosed in the announcement.
Howard Energy Partners (San Antonio), a private energy infrastructure company, agreed to acquire Iron Horse Midstream from Sixth Street. The acquisition includes approximately 400 miles of natural gas pipelines and a processing complex in Oklahoma. Financial terms were not disclosed, and closing is expected by year-end 2026.
Shrieve Chemical Company (The Woodlands), a specialty chemicals distributor backed by Gemspring Capital, acquired Clear Solutions International, a UK developer and manufacturer of water-based drilling fluid systems. Financial terms were not disclosed.
See you next week!
—Mason & Joel
This edition was supported by Malik Osumah.
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