07 Mar 19. Inmarsat plc (LSE: ISAT.L), (“Inmarsat”, the “Group”), the world leader in global mobile satellite communications, today announces unaudited financial results for the year ended 31 December 2018. Summary and Financial Highlights In 2018, Inmarsat delivered good growth in Revenue and EBITDA, with year-on-year increases of 5.3% and 4.2% respectively and consistent quarter-on-quarter improvement. This result, building on the return to growth established in 2017, was driven by the strength of our global GX broadband offering, particularly in Aviation, Government and Maritime, and by lower indirect costs. Aviation revenues grew by over 40%, within which In-Flight Connectivity revenues more than doubled.
• 2018 Group Revenue (ex Ligado) increased by $71.6m, or 5.7%, to $1,334.5m, including $26.6m increase in Q4: o Maritime: consistent double-digit growth in revenues and further market share capture in the fastgrowing VSAT segment. New strategies are being implemented in the mid-market, to help protect market share, as customers migrate to VSAT o Government: sustained and growing penetration of the US customer base. Revenues little changed in other markets o Aviation: In-Flight Connectivity (“IFC”) revenues more than doubled to $101.3m, including first GX IFC airtime revenues and with materially improved cash flow. Improved IFC market position with growing order book and strategic Panasonic agreement. Core business continues to deliver high margin double-digit revenue growth o Enterprise: legacy markets remain in long term decline, with foundations to access the emerging global satellite “Industrial Internet-of-Things” (“IIoT”) opportunity building steadily o GX airtime and related revenues4 : grew by around 85% to $250.9m (2017: $135.9m) • 2018 Group EBITDA (ex Ligado) increased by $27.0m, or 4.4%, to $639.5m, including $23.3m increase in Q4, reflecting growth in revenue and absence of further restructuring charges • 2018 Group Profit After Tax: down $60.0m (32.4%) to $125.0m, with higher EBITDA more than offset by higher depreciation • Further development of technology roadmap: GX-5 and I-6 satellite programs on track, new lower cost, higher functionality network architecture in development to drive meaningful moderation in capex from 2021 • These operational highlights exclude the impact of Ligado, which is not part of our core operations. Ligado contributed revenues of $130.7m (2017: $128.8m) and EBITDA of $130.6m (2017: $126.8m). 1 2017 figures have been restated throughout this announcement to reflect the adoption of IFRS15 and the accounting policy change for unallocated launch slots.
The Group has also adopted IFRS16 and IFRS9 as of 1 January 2018. Please refer to Appendix 2 of this document for further details. 2 Comprises revenue contribution from Central Services and Ligado Networks. 3 In response to the Guidelines on Alternative Performance Measures (‘APM’s) issued by the European Securities and Markets Authority, we have provided additional information on the APMs used by the Group, including definitions and reconciliations to statutory measures, within Appendix 1 of this document. 4 GX revenues restated for IFRS15 (impacting 2017 figures only) and to include Fleet Xpress terminal revenues, which were not previously included. 2 Rupert Pearce, Chief Executive Officer, commented on the results: “Inmarsat delivered consistent growth in 2018, building on our return to growth established in 2017. I am particularly pleased by the 85% revenue growth in GX services and a doubling of our IFC revenues, both of which augur well for the future.
“We remain focused on building and defending substantial market share in our target markets, supported by our diversified product portfolio and leading-edge networks. This will ensure we are able to fully capitalise on both the immediate and longer-term growth opportunities in these markets. “Supported by a tightly controlled cost base and an infrastructure capital investment programme which we are confident will meaningfully and sustainably moderate from 2021, we expect to generate sustained free cash flow growth over the medium to long term.”
The Board remains confident about the future prospects and outlook for the Group, and provides the following guidance: • A target of mid-single digit percentage revenue growth on average over the five year period, 2018 to 2022, with EBITDA and free cash flow generation improving steadily1 (unchanged) • 2019 revenue, ex Ligado, of $1,300m to $1,400m (new) • Annual GX revenues at a run rate of $500m by the end of 2020 (unchanged) • Cash Capex of $500m to $600m per annum for 2019 and 2020 (unchanged) • Capex is expected to meaningfully moderate thereafter 2020, falling initially to within a range of $450m to $550m in 2021 (updated) • Net Debt: EBITDA to normally remain below 3.5x (unchanged) The Group manages a diverse growth portfolio of businesses and products that in aggregate are expected to deliver the guidance above, with the portfolio mix expected to continue to evolve as individual markets develop over the medium term. The diversity of our business, with a focussed and attractive set of core end markets that offer scale and growth potential, and where we lead with sustainable differentiation, will remain a key strength for Inmarsat going forward.
07 Mar 19. Avon Rubber (AVON) has a track record of high returns on capital employed (19.4 per cent last year) and healthy margins (operating margins of 13.2 per cent), arising from its strong positions in the respiratory protection and dairy equipment markets. The group is very cash generative, and in recent years has been putting some of its money to use developing more advanced and higher-margin products, while the rest has built up on the balance sheet. With the first sale of one of these products inked just last month, we think there are good times ahead for Avon despite challenges presented by weak milk prices. Avon Rubber designs, develops and manufactures rubber-based products. The bulk of its work – 70 per cent of sales and 76 per cent of operating profit – is respiratory protection systems such as gas masks aimed at the defence, law enforcement and fire sectors, principally in the UK and US. Its other business sells milking equipment to the global dairy industry.
The company is using its strong balance sheet and established market position to develop higher-margin products and branch into new areas. Research and development spending last year rose 17 per cent to £9.7m, accounting for 5.9 per cent of sales, a level of funding that is expected to be maintained over the medium term. The group aims to make substantial investments in areas that are “most relevant to our customers and [offer] the best commercial outcomes”, rather than spreading investments thinly across a wide range of applications.
This means much more focus on protection. The group has built a close relationship with the US Department of Defence over the course of its decade-long contract as sole supplier for the M50 mask system. Avon has been working on new products for the US military, which should secure it higher margin and a better spread of revenue between the masks its sells and aftermarket services, accessories and spares.
At the start of the calendar year, management announced a $92.7m (£70.4m) contract with the US Department of Defense to supply one of its new products, the M69 Aircrew mask. The first order, worth $17.8m for 7,000 systems and related accessories, was made in early February. Further orders are expected related to a follow-on contract for its M50 masks and a new M53A1 mask and air powered system.
The company’s impressive cash generative along with proceeds from the sale of a non-core hovercraft skirt business pushed net cash up from £21.8m to £46.5m last year. The company also has a £31m pension deficit. Management wants to use the cash pile to bolster growth with acquisitions to expand product ranges or broaden geographic range. Management says it would not take net debt beyond two times cash profits. Given the limited benefit of holding such cash in a low-interest rate environment, the right deal could provide a substantial boost.
The most recent acquisition was the $2.1m purchase a calf-nurser product line from animal feed group Merrick’s last June. However, a fall in milk prices is expected to lead to a subdued performance from the dairy business overall this year.
The build-up in cash over recent years means there is plenty of scope to work the balance sheet harder if a good acquisition can be found at the right price. In the meantime, adjusted for cash, the shares are valued at just 13.5 times 2020 forecasts. That looks a low price for a company with such a strong position in its market and new products that should further enhance its business’s already very attractive returns. Buy. Last IC View: Buy, 1,365p, 14 Nov 2018. (Source: Investors Chronicle)
07 Mar 19. GKN deal boosts Melrose’s profit, eases economy worries. Melrose Industries’ hard-fought takeover of British engineer GKN helped to boost 2018 profits at the turnaround specialist and ease analyst concerns about its ability to cope with a slowing global economy and weaker autos markets.
Melrose shares rose as much as 6 percent in early Thursday trading to top Britain’s blue-chip FTSE-100 index. The company narrowly clinched an £8bn takeover of GKN in March last year, pulling off Britain’s biggest hostile bid since Kraft pounced on confectionery giant Cadbury in 2009.
Melrose, set up 16 years ago, focuses on turning around industrial companies and then finding new owners for them, following a strategy of “buy, improve, sell”.
The company reported adjusted operating profit excluding GKN’s loss-making contracts of £784m for last year, 5 percent ahead of JP Morgan estimates.
“The beat (was) despite the market’s concern on the end market development, notably in automotive, and speaks to the impact management actions are already having at GKN,” said JP Morgan analysts, who have an “overweight” rating on the stock.
Automakers, major customers of GKN, face a host of challenges including declining diesel vehicle sales, stricter regulations, investment in electric vehicles and Britain’s departure from the European Union, which could disrupt trade.
“Despite the current economically uncertain environment, we have every confidence that we will be able to continue to unlock the substantial shareholder value from the former GKN businesses,” Chairman Justin Dowley said in a statement.
Analysts also cheered a fall in Melrose’s ratio of net debt to core earnings to 2.3, beating the company’s guidance of 2.5.
GKN traces its roots back more than 250 years. It made cannonballs for the Duke of Wellington’s armies in the Napoleonic wars of the early nineteenth century and went on to produce Spitfire fight planes in the Second World War.
The modern GKN is made up of three main divisions: automotive, aerospace and powder metallurgy and supplies parts to carmakers such as Volkswagen and components to aircraft including the Eurofighter Typhoon.
Its takeover led to speculation Melrose could sell GKN’s aerospace business, which is involved in government defence programmes, to an overseas buyer. Reuters reported in October that Melrose was planning to sell the powder metallurgy unit.
Melrose, which has committed to a five-year ownership of the aerospace division, did not provide an update on any sales. (Source: Reuters)
07 Mar 19. Melrose audited results for the year ended 31 December 2018. Melrose Industries PLC today announces its audited results for the year ended 31 December 2018. This includes 8 months of contribution from GKN since acquisition. An additional measure to guide ongoing performance, the 2018 unaudited, annualised adjusted1 numbers, is also shown below.
- The results for 2018 are ahead of the Board’s previous expectations
- This outperformance has been achieved before including a £63m positive impact from the required IFRS accounting treatment for loss-making contracts. Resolution of these loss-making positions offers significant potential for further performance improvement
- Adjusted1 diluted earnings per share were up 36% on last year, with a proposed final dividend of 3.05 pence per share which is 9% up on last year, giving a full year dividend of 4.6 pence per share, up 10%
- Total free cash flow from trading was £196 m. This was after all costs including restructuring, special pension contributions and tax
- The net debt to EBITDA1 leverage ratio has reduced to 2.3x, ahead of the previous guidance of 2.5x
- North America Aerostructures is approaching operational break-even, on a run rate basis, and relationships with key aerospace customers have been much improved
- In Automotive, present indications are consistent with a slowdown, but this is not currently expected to cause a major impact on 2019 profitability. Improvement actions are underway to ensure the successful long-term development of the business
- Nortek Group adjusted1 operating margins have increased from 8.7% at acquisition to 14.7% in 2018 with the potential for further improvement
- The GKN UK defined benefit pension accounting deficit has reduced from £691m to £588m since December 2017, and an independent Chairman of the trustees has been appointed
- An investor event for Aerospace and Automotive will be held on 3 April 2019 in London
Justin Dowley, Chairman of Melrose Industries PLC, today said: “This has been a transformational year for Melrose and we are delighted to announce, on an annualised adjusted basis, an operating profit of over one billion pounds. The former GKN businesses are proving their potential to offer the outstanding opportunities we expected and much has already been achieved in the short period of ownership. Despite the current economically uncertain environment, we have every confidence that we will be able to continue to unlock the substantial shareholder value from the former GKN businesses and further improve Nortek.”
The audited results
- The statutory and adjusted1 results include GKN for the eight months since acquisition on 19 April 2018
- The 2018 adjusted1 operating profit was £847m; excluding the positive impact from the required IFRS accounting for loss-making contracts in GKN it would have been £784m
- The statutory loss before tax of £550m arose primarily due to significant acquisition related items, most of which arise from GKN
The unaudited annualised adjusted1 results – including 12 months of GKN
- The annualised adjusted1 results include a full 12 months of GKN assuming it was acquired on 1 January 2018, and give a meaningful measure of annualised performance to guide ongoing results
- The annualised adjusted1 operating profit was £1,095m; excluding the positive impact from the required IFRS accounting for loss-making contracts in GKN it would have been £1,002m
- The annualised adjusted1 diluted earnings per share were 13.8 pence, up 41% on Melrose adjusted1 diluted earnings per share last year
1Described in the glossary to the 2018 Preliminary Announcement, released on 7 March 2019.
06 Mar 19. Boeing [NYSE: BA] completed the acquisition of ForeFlight, a leading provider of innovative mobile and web-based aviation applications. ForeFlight has partnered with Boeing for the past two years to bring aviators Jeppesen’s aeronautical data and charts through ForeFlight’s popular mobile platforms. Now, the teams will integrate talent and offerings to bring innovative, expanded digital solutions to all segments of the aviation industry.
“We are excited to build on ForeFlight’s tremendous success in personal, business and defense aviation so we can provide next-generation, integrated tools to our aviation customers today,” said Ken Sain, Boeing Vice President of Digital Solutions and Analytics. “This acquisition also expands Boeing’s rapidly growing, unparalleled digital services portfolio which will enable us to compete and win in the $2.8trn, 10-year services market.”
The acquisition of ForeFlight aligns with Boeing’s growth strategy of complementing organic investments with targeted, strategic investments that position the company for long-term growth.
“We are inspired by the future built at Boeing and what our teams will be able to create by coming together,” said Tyson Weihs, co-founder and CEO of ForeFlight. “Our companies share a passion for delivering customers the essential tools that drive efficiency, productivity, and safety.”
Terms of the approved deal are not being disclosed and do not affect Boeing’s financial guidance or the company’s commitment to returning approximately 100 percent of free cash flow to shareholders.
Headquartered in Houston, Texas, ForeFlight has approximately 180 employees.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
06 Mar 19. Thales and Gemalto are granted antitrust clearance in the United States. Reference is made to the joint press release by Thales (Euronext Paris: HO) and Gemalto (Euronext Amsterdam and Paris: GTO) dated 27 March 2018 in relation to the launch of the recommended all-cash offer by Thales for all the issued and outstanding shares of Gemalto (the Offer), the publication of the Offer Document, and the joint press release of Thales and Gemalto dated 10 August 2018 in relation to the further extension of the Acceptance Period. Terms not defined in this press release will have the meaning as set forth in the Offer Document.
Thales and Gemalto announce today that they have received Regulatory Clearance for US antitrust approval, as the Stipulation and Order related to their agreement with the United States Department of Justice, which was announced on 1 March 2019, has been entered by the court.
Together with the antitrust clearances obtained in China, Israel, New Zealand, South Africa, Turkey, the European Union, Australia and Mexico, and clearances relating to foreign investments obtained in Australia, Canada and the United States (CFIUS), Thales and Gemalto have obtained 12 of the required 14 Regulatory Approvals.
Thales and Gemalto continue to work constructively with the competent authorities in Russia.
Thales and Gemalto expect to close the Offer in March 2019.
Further announcements will be made if and when a Regulatory Clearance has been obtained or the Offer Condition with respect to Regulatory Clearances is satisfied, waived or has become incapable of being satisfied, or as otherwise required by applicable law. As announced on 10 August 2018, the Acceptance Period has been further extended by Thales in accordance with a dispensation granted by the Dutch financial markets authority (AFM) and will end two weeks after the fulfilment of the Offer Condition with respect to Regulatory Clearances or the waiver thereof (but no later than the Long Stop Date).
07 Mar 19. British engineer Cobham intends to reinstate dividend. British engineer Cobham said it planned to reinstate a progressive dividend after it strengthened its balance sheet, settled a dispute with Boeing and forecast more progress in 2019. Britain’s third-biggest defence and aerospace group behind Rolls-Royce and BAE Systems said it expected to see strong demand for its products in markets such as the United States, but government debt and budget deficits would put a focus on value for money.
Known for its air-to-air refuelling technology, Cobham had been in recovery mode since a string of profit warnings forced it into a rights issue in 2017. In 2018 that recovery was disrupted by a dispute with Boeing, the world’s largest planemaker, over a refuelling programme delay. It was settled last month when Cobham took an additional exceptional charge of 160m pounds to fix the problem. Cobham said it succeeded in strengthening its balance sheet in 2018, moving from a net debt to core earnings ratio of 3.0x two years ago, to a figure of 1.5x now.
“We continue to believe that there are considerable opportunities to improve the performance of the group over the medium term and our continuing focus on customers, culture, operational improvement, business simplification and cash will allow us to realise this potential,” Chief Executive David Lockwood said.
It reported 2018 underlying operating profit of 196m pounds ($258.1m), down from 213m pounds the year before. With 10.3m pounds of net cash at the year end, it expects to pay a full-year dividend of 1.0 pence.
Cobham said it had seen progress across the group, apart from in the Advanced Electronic Solutions unit. That division, which provides critical data communications on land, at sea and in the air and space, now had a new management team, a new strategy and a cost saving plan, it said. (Source: Reuters)
05 Mar 19. FLIR Systems, Inc. (NASDAQ: FLIR) announced today that it has completed its previously announced acquisition of Endeavor Robotic Holdings, Inc., a leading developer of battle-tested, tactical unmanned ground vehicles (UGVs) for the global military, public safety, and critical infrastructure markets, from Arlington Capital Partners for $382m in cash.
05 Mar 19. Fincantieri CEO fends off another leadership challenge as results soar. In the slippery world of Italian state-controlled industries, politically appointed managers come and go as fast as the governments that appoint them. But at the age of 74, Fincantieri CEO Giuseppe Bono is heading towards yet another mandate after threats to his leadership from a government party were thwarted, proving again that he is the ultimate canny survivor after 17 years on the job.
The soaring results racked up by the Italian shipyard last year did no harm to the veteran’s standing. Figures released this week showed that Fincantieri’s enormous €34bn ($39bn) backlog of work, pushed by naval and cruise ship orders, is now equivalent to 2 percent of Italy’s GDP.
The recent challenge to Bono’s job came when a junior government minister suggested the CEO should work alongside a new co-manager. Pointing out that Bono was over 70, Stefano Buffagni said, “We need a medium- to long-term plan that mixes experience with change in a positive way.”
Buffagni is a member of the Five Star party, which as a partner in Italy’s governing populist coalition has sworn to bring fresh blood to Italy’s major state-run firms.
Political tinkering with senior management at major players like Leonardo, formerly known as Finmeccanica, has not always produced positive results. In 2002, politicians looking to put their own nominees in the board room got two men appointed to jointly run the defense giant— Pierfrancesco Guarguaglini and Roberto Testore.
The co-existence of the two men soon proved unworkable and Testore was jettisoned. Appointed to run Fincantieri in 2002 after a spell running Finmeccanica, Bono has to date survived the tinkering of a stream of Italian governments as he built up the shipyard into a major force, managing to keep yards open up and down Italy, from Sicily to Trieste, pleasing politicians with local constituencies to worry about, as well as local unions.
In 2015, the firm was the beneficiary of a massive €5.4bn ($6bn) Italian navy ship order, which insiders put down to a lucky combination of having a navy chief determined to renew the fleet, a defense minister, Roberta Pinotti, who hailed from Genoa – close to Fincantieri yards — and a need to manage the sailing of thousands of migrants across the Mediterranean.
Last year’s results, announced at the end of February, saw revenue rise 9 percent to a record €5.5bn ($6.2 bn) in 2018, with €1.43bn ($1.6bn) from naval work – an 18 percent rise over 2017.
While the firm continues to build Littoral Combat Ships with Lockheed Martin at its U.S.-owned yard, Fincantieri is also pitching its FREMM frigate to the U.S. Navy. The firm lost out in its bid to sell the frigate to Australia, but is now seeking to sell corvettes to Brazil and Romania.
It has not all gone Bono’s way. His dream of brokering a deal with France’s Naval Group to integrate their yards is struggling as Italy’s populist government picks fights with Paris over who should accept migrants, and a plan to buy Italian electronics firm Vitrociset was scuppered by Leonardo, which stepped in to buy the firm.
But Fincantieri has meanwhile scored a coup on the home front by branching out into bridge construction as part of the team rebuilding the Morandi bridge in Genoa, which collapsed last summer. Speedy work on the politically sensitive project will likely rack up more political points for Bono in Rome.
Signs that the CEO would be able to fight off the move by Five Star to install its own man alongside him came on Feb. 27 as Fincantieri held a ceremony in Trieste to mark the start of work on a series of new naval vessels for Qatar.
Speaking on the same day, Fabrizio Palermo, who runs the state investment body which controls Fincantieri, strongly praised Bono, hardly surprising since he used to work at Fincantieri under the veteran CEO.
Then, the following day, deputy prime minister Matteo Salvini, who is the head of Five Star’s governing partner, the League, was even more forthright in his defense of Bono.
Asked about the reconfirmation of Bono as sole CEO, he said, “You don’t change a winning team,” adding the government needed to “recognize who is doing a good job and move on.”
The same day, it was reported that Five Star was backing off and prepared to leave Bono in charge, in exchange for being able to install new board members of its choosing at a crunch meeting this week. “For me, Bono is reconfirmed,” Salvini said on Monday. (Source: Defense News)
04 Mar 19. Record sales at Senior. Demand for engineering components in the aerospace and industrial vehicle markets helped Senior (SNR) deliver record sales for the year to December 2018 which, combined with an 8.5 per cent operating margin, left adjusted operating profits up by 13 per cent at £91.6m. Adjusted earnings per share rose 12 per cent to 16.08p, but the headline figure retreated 17 per cent to 11.99p as a £16m tax credit from the previous year wasn’t repeated.
The main growth driver was the aerospace division, which accounts for 70 per cent of group revenues, and where operating profits rose 6.9 per cent at £80.4m. Adjusted operating margins were stable at 10.6 per cent, however, reflecting volume reductions on maturing programmes and costs associated with the introduction of new ones.
In the Flexonics division, sales to truck and off-highway markets rose by 17.3 per cent, while sales to passenger vehicle markets eased by 5 per cent as the company eschewed adding new low-margin business with high capital requirements. Increased drilling activity saw power and energy market sales up 12.7 per cent, while sales to the power generation market rose by more than a fifth.
Prior to these numbers, analysts at JPMorgan Cazenove forecast adjusted cash profits for the year to December 2019 of £97m and EPS of 16.9p.
Senior pushed the return on capital employed up from 11.9 per cent to 13 per cent, and while the aerospace side should deliver another year of growth, some uncertainties remain over Flexonics. Hold. Last IC View: Hold, 295p 26 Feb 2018. (Source: Investors Chronicle)
04 Mar 19. Rolls-Royce falls as it backs out of second engine contract tender in a week. Last Thursday, Rolls said it would not be bidding to power Boeing’s latest plane, while it has now confirmed that it has all but given up on developing the engine for Turkey’s new fighter jet. Rolls Royce Holdings PLC (LON:RR.) shares flew lower on Monday amid reports it had all but given up on winning the contract to design and build the engine for a new Turkish fighter jet.
The FTSE 100 giant had been working with Turkish industrial group Kale to bid for the contract which would have seen it form part of the team tasked with developing the TF-X jet – Turkey’s first indigenous combat aircraft.
But talks ran into problems last year over the sharing of intellectual property and the involvement of BMC – a Turkish defence contractor with links to the Qatari ministry of defence.
Speaking to the Financial Times, chief executive Warren East said his firm has now “substantially ramped down” on the TF-X project and has started reassigning workers to other schemes.
“We’ve given what we believe is our best offer,” he told the newspaper.
“It is up to [the Turkish government] if they don’t want to work with Rolls-Royce and want to find another solution. We are not prepared to do anything further on that.”
One source told the FT that talks could re-start, but only if Turkey came back at a “very senior level”.
If that doesn’t happen, it would strike a blow to Theresa May and her government, who had lobbied hard for Rolls to win the deal.
This is the second contract tender the company has withdrawn from over the past week.
Last Thursday, Rolls-Royce pulled its bid to power Boeing’s new mid-size plane amid concerns that it might not have enough time to deliver a “sufficiently mature product”. Shares fell 2.9% to 878.8p in late-morning trading on Monday. (Source: proactiveinvestors.co.uk)
01 Mar 19. CACI Completes Strategic Acquisition of LGS Innovations.
Expands Capabilities in Signals Intelligence, Electronic Warfare, and Cyber Products and Solutions. CACI International Inc (NYSE: CACI) announced today that it has completed its transaction with affiliates of Madison Dearborn Partners and CoVant Management to acquire LGS Innovations, a leading provider of real-time spectrum management, C4ISR, and cyber products and solutions to the Intelligence Community and Department of Defense. The strategic acquisition complements CACI’s January purchase of Mastodon Design and accelerates CACI’s growth in its Intelligence Systems and Support, Space Operations and Resiliency, Communications, and Cyber Security market areas.
The combined purchase price of LGS and Mastodon Design, which closed January 28, 2019, is expected to be $975m, or $835m net of transaction-related tax benefits worth $140m on a net present value basis. We anticipate the two transactions will be accretive to net income and earnings per share, excluding $17m of one-time pre-tax transaction costs, virtually all of which will be recorded in CACI’s fiscal third quarter.
Dr. J.P. (Jack) London, CACI Executive Chairman and Chairman of the Board, said, “We welcome the highly skilled and inventive LGS Innovations employees to CACI’s own team of talented innovators. We share a cultural commitment to integrity and ethics that will further drive excellence for our customers and long-term value for our shareholders.”
According to Ken Asbury, CACI President and Chief Executive Officer, “CACI’s acquisition of LGS Innovations is the next step in our established strategy to invest in and expand our offerings in signals intelligence, electronic warfare, and cyber products and solutions. Our collective strengths give CACI a significant competitive advantage in our marketplace and meet our government’s need for agile innovation in developing and deploying advanced capabilities to our warfighters.” (Source: BUSINESS WIRE)
01 Mar 19. Sparton Corporation Shareholders Approve Merger with Cerberus. Sparton Corporation (“Sparton”) (NYSE:SPA) announced that, at a special meeting of shareholders held today, the shareholders of Sparton approved the proposed acquisition of Sparton by Sparton Parent, Inc. (formerly known as Striker Parent 2018, LLC) (“Parent”), an affiliate of Cerberus Capital Management, L.P. (“Cerberus”), by adopting the previously announced Agreement and Plan of Merger, dated as of December 11, 2018, by and among Sparton, Parent and Striker Merger Sub 2018, Inc., a wholly owned subsidiary of Parent (“Merger Sub”). The transaction remains subject to customary closing conditions. The parties expect to close the transaction promptly. (Source: BUSINESS WIRE)
01 Mar 19. Orders and revenue up at Indra in 2018. Spanish IT and defence systems group Indra’s has said its profits fell by 5.6% to EUR120m (USD136m) in 2018, but its overall revenue, orderbook, and earnings all increased over the previous year. Net order intake was up 5.8% to EUR3.43bn, while overall income was 3.1% higher at EUR3.1bn and the existing orderbook was up 12.5% to EUR4.06bn, the company announced on 28 February. Chairman and CEO Fernando Abril-Martorell said, “[The] 2018 results start to show the benefits coming from the implementation of the transformation, investment, efficiency, and cultural change initiatives announced in our new strategic plan 2018–2020.” (Source: IHS Jane’s)
01 Mar 19. UAV Vision Rebrands as AVT Australia. UAV Vision, an Australian company that specializes in high-performance imaging systems for air, ground and maritime domains, will be trading under a new name – AVT Australia – as part of its corporate rebranding initiative. The new branding represents the strategic partnership between UAV Vision and Ascent Vision Technologies. The two companies formed a close partnership in 2014 to deliver the best-in-class imaging systems for intelligence, surveillance and reconnaissance; counter UAS; and air defense missions. To prevent confusion, the companies will share a common name, which will be reinforced with a combined logo.
Founder and CEO of Ascent Vision Technologies and CEO of AVT Australia, Tim Sheehy, said, “Our new name and logo reflect the progressive future we are establishing for the company. A stronger partnership between the companies will help us deliver the very best solutions to our customers. This is an exciting time for the company, having secured several large defense contracts with US, Australian and allied militaries. We are experiencing rapid growth across multiple market sectors and are innovating now more than ever. With numerous projects in the pipeline, we look forward to the year ahead, where we will continue to strengthen our partnerships, innovate and grow our teams in Australia and the United States.”
About AVT Australia
AVT Australia focuses on serving customers in the Asia-Pacific region, providing ITAR free imaging systems and integrated solutions optimized for demanding operational environments. With a focus on innovation and customer satisfaction, AVT Australia has become a leading provider of imaging systems for aerial surveillance, counter UAS and land warfare applications. Under the UAV Vision brand, the company has supported several defense contracts in Australia and South East Asia. Its multi-disciplinary work force enables a rapid development cycle, comprehensive customer support, and first to market capability. (Source: UAS VISION)
28 Feb 19. Russian Majority Share Investment in OneWeb. A filing at the Advanced Television infosite by journalist Chris Forrester indicates that Russian businesses have reportedly bought a majority share of the OneWeb satellite mega-constellation that will operate over Russia via a Russian joint venture.
This means, in essence, that OneWeb should now be able to gain access to Russian consumers, the president of a joint-venture partner said. Dmitry Bakanov, DG of JSC Satellite System Gonets, said Russian majority ownership of the OneWeb operations over Russia, plus OneWeb’s decision to purchase 21 Russian Soyuz-Fregat rockets to launch the OneWeb satellite constellation, are strong arguments in favor of allowing OneWeb to operate in Russia. OneWeb needs ground stations to receive and transmit signals while the satellites are over Russia.
Russia is developing its own satellites for broadband connectivity under the Gazprom umbrella and using Israel’s Gilat for the ground network and terminals. The first batch of six OneWeb satellites are scheduled to launch on February 27 aboard a Soyuz rocket from the Arianespace facility in French Guiana.
“The share of the Russian side in the joint venture has been brought up to 51 percent. Information is being exchanged between the interested parties to analyze various issues, including security issues and processes related to the first launch of OneWeb satellites are underway,” Bakanov told Russian news site Kommersant. “Negotiations are under way about the possibility of Russian capital participating in OneWeb. The final decision will depend on the outcome of each of these components.” (Source: Satnews)