Adam Norwitt: Yes. I don’t know that we have a specific number to give you for the margin dilution. I mean, we’ll talk about it when we own the company. In terms of the priorities, I mean, every acquisition we make we want them to accelerate their growth and make more money doing it. And so you can imagine that with the CIT team we’re already talking about, to the extent that we can before closing, we’re already talking about how do they both accelerate their growth, expand their market position, take advantage of being part of Amphenol, take advantage of the broader access that we have as a company, take advantage of the broader suite of technologies that we have to grow their business. And in turn, how do they take advantage of our low-cost manufacturing.
How do they take advantage of the broader relationships we have in the supply chain, whatever that may be. And also just how do they take advantage of now being part of a high-performance interconnect company like Amphenol? I will tell you, in years past, when we’ve seen companies improve their performance, some of that was just they came in and they saw, oh my goodness, I didn’t realize I could make that much money. And they just figured it out and made it happen. And it’s not that we parachute in with a bunch of folks from headquarters or otherwise, but there is inside of the company so many great role models of organizations run by entrepreneurs, run by Amphenol and general managers who have just figured it out. And that is – we don’t have an Amphenol business system.
We don’t have an Amphenol way. The Amphenol way is just to liberate people, to give them the authority and to hold them accountable as entrepreneurs. And that mindset is very different from most other companies. And again, Carlisle is a fabulous organization, the parent company, but they’re not an interconnect company. And I think CIT, as part of Amphenol with our unique culture, with our uniquely broad suite of products and relationships, I can’t tell you exactly how they’re going to do it, but I have a lot of confidence that they will.
Operator: Thank you. And our last question comes from Joe Giordano with TD Cowen. You may go ahead.
Joe Giordano: Hi thanks. Just curious like with the AI stuff, is there any inherent margin differential between the products that you’re selling on these next gen technologies versus more traditional data center or versus like more of the company average? And then if I could, I asked your competitor this morning. But when you think about the CapEx that you need to do and the scale of what these customers of yours are thinking over a multiyear period is massive. How do you like bring that down to your own spend and like rationalize? Is this doable? Like how fast do we want to spend ahead of something that might be a five-year story, like how do you balance that?
Adam Norwitt: Yes. Look, I may let Craig comment on the margins, except I mean, it’s an easy answer. It’s just like look, we make margins based on selling value to customers. If we can create value for our customers, then usually there’s value for us to be had there. And I think that’s basically what I would say in this respect. Relative to scaling and working with our customers, I mean, you can imagine that we have very intensive discussions with our customers in every market. Here, because of the economics behind it, because of the pressure on our customers and the big vision, you can imagine that we’re having even more intensive discussions. And so this is not just like you get an order and then you say, all right, well, I’m going to go invest XYZ.
I mean this is a very iterative, interactive discussion. But it’s all done under the context of the Amphenol approach. These are – it’s not that we’re making decisions here at headquarters and allocating capital. We have general managers making – and having responsibility for specific products and they’re going to figure out how do they satisfy the customer, but also knowing that it’s their capital that they’re spending. And if they spend more than they should, that’s going to hit their P&L., not just going to hit Amphenol’s P&L, it’s going to hit their P&L. And that accountability of sort of from birth to death of a program is something that I think is very unique in our organization. And over time, when I think about why does Amphenol spend what we spend on capital expenditures, it is in large part because the ownership of that, the accountability, the authority for that is resident in individuals who also go to the customer every day, who also are in charge of the factory, who also are in charge of developing the products.
And when you have that comprehensive authority, you tend to make wiser decisions about this. And it’s not like, well, I’m going to overinvest now and let the next person clean it up on my behalf. These folks are there for the long term and they own it all. And I think they’re going to make wise decisions accordingly.
Operator: Thank you. And I’ll now turn the call back over to Mr. Norwitt for any closing remarks.
Adam Norwitt: Well, thank you very much. And again, thanks to everybody for your time today. We appreciate everybody’s attention. And I wish that everybody has a fabulous spring, and we’ll talk to you again in 90 days or so. Take care. Thank you.
Operator: Thank you for attending today’s conference, and have a nice day.
