Sponsored by TCI International Inc.
08 Jan 21. ArchTIS finalises acquisition of Nucleus Cyber. Canberra-based cyber technology company, archTis has formally announced it has successfully completed the acquisition of advanced information protection provider, Nucleus Cyber as part of a multi-million dollar acquisition process.
According to the terms of the agreement, archTIS will acquire a 100 per cent stake in Nucleus Cyber in an all-stock deal for a total consideration of $9.75m (US $7.1m).
In conjunction with this acquisition, archTIS also announced it has raised a funding placement of approximately $8.4m via the ASX exchange and will use the new funds to accelerate the growth of the combined businesses.
As part of the deal, key senior executives from Nucleus Cyber have agreed to join the archTIS senior management team and archTIS will continue to maintain and operate Nucleus Cyber’s existing Boston headquarters. Additionally, Kurt Mueffelmann, former CEO of Nucleus Cyber, will lead global operations for archTIS as its new chief operating officer.
Daniel Lai, CEO of archTIS said, “The acquisition of Nucleus Cyber is transformative for archTIS as it instantly expands our global footprint and delivers access to the expansive and lucrative Microsoft partner ecosystem which has been diligently cultivated by the Nucleus team.”
Founded in 2018, Nucleus Cyber was started with a singular mission: to ensure that data-driven security is at the core of the modern workplace. The company’s flagship solution, NC Protect, utilises dynamic, data-centric security that leverages both file and user attributes to automatically find, classify and secure unstructured data, enabling customers to better protect against insider threats from data loss, misuse, unauthorised access and simple human error.
“With the addition of the Nucleus Cyber product and team, we are now one step closer towards establishing archTIS as the world’s premier provider of policy enforced access control platforms for securing and sharing digital information. Having known and worked with the Nucleus Cyber team through our previous channel partnership, we are excited to welcome them to the archTIS family,” Lai added.
The ability to secure sensitive information has become an urgent priority over the past year as the global pandemic has forced millions of employees to work from home.
A recent survey shows data loss has also spiked in the wake of remote work, stemming from downloads of “classified” company information and increases in the number of files being shared in chats and messages.
With 74 per cent of companies surveyed by Gartner planning to permanently shift some of their personnel to remote work, this new reality presents a long-term information security challenge for many organisations.
Kurt Mueffelmann, global COO of archTIS and former CEO of Nucleus Cyber added, “The two teams at Nucleus Cyber and archTIS share a long and productive history as well as a common approach of applying Attribute Based Access Control (ABAC) technologies that ensure sensitive information is properly secured.”
Nucleus Cyber, an archTIS Limited company, is a provider of advanced information protection solutions that prevent data loss and protect against insider threats. The company’s NC Protect solution leverages existing technology investments to provide a simpler, faster and cheaper solution to tailor information protection for file sharing, messaging and chat across collaboration tools.
archTIS Limited is an award winning, global technology company focused on protecting sensitive information. Leveraging its strong pedigree with government and Defence, the company has developed industry-leading information security platforms for sharing and collaborating on sensitive or classified information. (Source: Defence Connect)
06 Jan 21. GracoRoberts Acquires Able Aerospace Adhesives to Expand International Footprint and Cement its Position as the Largest and Most Technically Focused Aerospace Distributor in North America.
Transaction Builds on Standing in Military and MRO Segments. GracoRoberts today announced it closed the acquisition of Able Aerospace Adhesives on December 30, 2020 to extend its footprint in the international aerospace specialty chemicals market, most prominently in the Asia-Pacific Region. Additionally, the acquisition brings with it another 36 years of aerospace relationships and expertise, with an even deeper concentration in the military and MRO markets, amplifying the company’s already sound position as the largest and most specification-driven aerospace specialty chemicals distributor in North America.
The addition of 8-time Boeing Excellence award winner Able Aerospace Adhesives to the GracoRoberts’ portfolio means even more custom value-added services, coupled with the same intense focus on world-class quality to support the evolving needs of its customer and supplier partners. The introduction of RFID, more custom labeling capabilities, a sizeable increase in freezer storage capacity, international logistics and distribution expertise, and a team of tenured sales and service professionals all add tremendous value to the stakeholder experience.
“We are thrilled to have the customer-focused team from Able Aerospace Adhesives join the GracoRoberts’ family. Together we will offer a broader range of products and value-added services on a global scale,” said Jason Caldwell, President and CEO of GracoRoberts. “The Able customer base brings considerable international, MRO, and military focus to our aerospace business model, which nicely rounds out our existing leadership position in North America,” he continued.
Mukesh Desai, President of Able Aerospace Adhesives, also commented on the integration, and his decision to partner with GracoRoberts after more than three decades operating his own companies. “At Able Aerospace, we have developed a unique niche of international and military customers. By joining the GracoRoberts’ family, we can now provide a considerably larger platform of aerospace chemicals and services to our customer base. We are honored to be part of GracoRoberts.”
With nearly 30 years of experience providing growth capital to the aerospace, defense and federal services sectors, CM Equity Partners, the private equity sponsor of GracoRoberts, supports the acquisition, continuing a strong track record of growth and enabling GracoRoberts to better serve its customers and suppliers domestically and abroad.
Over the next 30 days, the leaders of both companies will finalize and implement a transition plan to bring the two organizations together as one. Until the integration is complete, both groups’ customers and suppliers can expect business as usual.
Headquartered in Arlington, TX, GracoRoberts (www.gracoroberts.com) is the single largest and most technically focused specialty chemicals distributor to serve the North American aerospace market. We are a full-service supplier of complex engineered materials for aerospace OEM and MRO segments, composites, electronics, and other advanced manufacturing industries. We are fully AS- and ISO-certified and authorized to distribute 3M, Airtech, Akzo Nobel, Castrol, Eastman, Henkel, Hexcel, Huntsman, ITW Polymers, Mask-Off, Momentive, Resin Formulators, Scott Bader, Sika, and Zip Chem, and can source other providers upon request. We differentiate by adding value: services include distribution, custom formulation, specialty packaging, vendor managed inventory, intermix paint services, turnkey classified program management, and an on-staff Chemist, lab, and testing facility. For 140 years, GracoRoberts has delivered superior engineered materials with impeccable support to thousands of customers from more than 65 countries and all seven continents around the globe.
About Able Aerospace Adhesives
Founded in 1984, Able Aerospace Adhesives (www.ableaero.com) is a global supplier of specialty aerospace chemicals and related products. Able Aerospace has an expertise in international and military customers with special requirements including temperature control and hazardous packaging. Able delivers the highest level of service and attention to detail to its global customer base. The company provides a unique combination of personalized service along with the capability to serve large customers.
About CM Equity Partners
CM Equity Partners (CMEP) (www.cmequity.com), based in New York, NY, provides capital to the Federal services and aerospace and defense industries. For nearly thirty years, CMEP has partnered with management teams to build value in its investment companies by leveraging its long-standing industry knowledge, relationships, operating experience, and its corporate finance, M&A, and private equity expertise. CMEP provides an active and collaborative management approach to its investments, developing long-term strategic plans and supporting re-investment of profits to grow and broaden a company’s revenue base and capabilities. CMEP’s investments are structured with flexibility across a broad spectrum of the capital structure, including equity, structured equity, and mezzanine debt. (Source: PR Newswire)
07 Jan 21. Axiologic Solutions Acquires Intelligence Firm Knowledge Link. Leading federal IT solutions firm expands intelligence segment support, adds financial services and infrastructure expertise, nearly doubles team through merger with highly respected IC firm.
Axiologic Solutions LLC, a leader in federal IT solutions specializing in serving the nation’s national security and intelligence missions, announced today it has acquired Herndon-based intelligence services firm Knowledge Link, a provider of financial, technology and program management services in classified federal government environments. The addition of Knowledge Link will nearly double the size of Axiologic, strategically expand its capabilities, and allow it to bring a greater range of services and mission support to more customers across the federal national security spectrum.
“We are incredibly excited about this major transformational moment for our company because it’s a triple win – for our customers, our team members and our partners,” said Tom Stauber, co-founder and managing partner at Axiologic Solutions. “Through the combination of Axiologic and Knowledge Link, we’ll be creating an even stronger, broader range of technology, financial and program management solutions for classified environments. The Knowledge Link team shares many of our own values and dedication to serving the nation and, like us, are former members of the intelligence and defense communities that we support. We look forward to leveraging this cultural chemistry to collaborate on bringing combined capabilities to more customers in need of innovations to support and protect our country.”
Founded in 2003, Knowledge Link has been steadily growing and today offers a portfolio of services that solve the most daunting and challenging technology obstacles facing intelligence customers. The company’s engineers, architects and analysts deliver innovative solutions within classified environments that span the full infrastructure life cycle of requirements definition, implementation and operation, as well as the development and integration of mission-critical applications and services. Knowledge Link provides a full range of mission-critical solutions including financial management, full lifecycle acquisition, program management, systems and software engineering, software development, and strategic business management.
This is Axiologic’s first acquisition, and its leadership team is continuing to pursue M&A opportunities as part of a strategic growth plan. The company has been on a rapid path of organic growth since it was founded by Stauber and co-founder and managing partner Michael Chavira in 2009. In 2020, the company received the following awards for its excellence in growth, performance and innovation:
– Greater Washington Government Innovation Awards, Industry Innovator for providing an outstanding data science solution for an intelligence risk management framework.
– Inc. 5000, top 15% of the fastest-growing companies in the nation.
– Northern Virginia Technology Council Tech 100, honoree.
– Washington Business Journal, No. 27 on list of Fastest Growing Companies within Greater Washington region.
– Washington Technology, Fast 50 list.
– Virginia Chamber of Commerce, Virginia Fantastic 50 list.
Axiologic was supported in the transaction by Miles & Stockbridge PC and Atlantic Union Bank, while Knowledge Link was represented by Rees Broome and investment banking adviser FON Corporate Finance.
About Axiologic Solutions
Axiologic Solutions provides strategically focused systems engineering and information technology solutions that solve the most challenging problems for defense, intelligence and other federal government communities. Axiologic’s analytical and disciplined approach moves government forward by creating unique solutions that improve current infrastructure and strategic operations, resulting in greater organizational efficiency and effectiveness. (Source: BUSINESS WIRE)
06 Jan 21. Avon insiders buy on temporary setback. The market reaction to an unexpected contract delay may have opened up a buying opportunity.
- DLA contract delays to materially impact full-year results
- A separate $33m order from NATO’s support & procurement agency
Shares in Avon Rubber (AVON) slumped in the run-up to Christmas after the Wiltshire-based group announced a delay to a contract to make body armour plates for the US Army and the Defense Logistics Agency (DLA). The group has been engaged in a product approval process for small arms protective inserts and body-armour plates, but these have dragged on longer than anticipated, with the result that first deliveries under the contracts are now expected to commence in the first half of the group’s 2022 financial year, which will have a material impact on results for its September year-end.
Avon also revealed that a protest has been lodged against the US Army Next Generation Integrated Head Protection System contract announced on 24 September 2020. It does not currently foresee any material impact on expectations for FY2021, but the contract updates represent a negative beat on near- to medium-term prospects, something of a rarity where Avon is concerned.
Group chairman Bruce Thompson and non-executive board member Victor Chavez clearly viewed the consequent double-digit markdown in the share price as an open goal and promptly snapped up around £123,000 of stock between them, garnering a paper profit of £7,000 in the intervening period.
Avon has continued to derive some benefit from the pandemic, specifically increased demand for its respiratory protection range for use by first responders, while order intake for its Ceradyne ballistic helmet range provides encouragement following its launch in North America in July 2020.
But given the highly competitive nature of its end markets, the group will be desperate to avoid a repeat of the contract delays and risk imperilling its reputation for reliability in terms of delivery. Still, a separate announcement detailing a $33m (£24.2m) order for respiratory equipment from NATO’s support & procurement agency suggests that industry take-up of the group’s protection technologies is not slowing down. Buy at 3,250p. Last IC view: Buy, 4,285p, 2 Dec 2020. (Source: Investors Chronicle)
05 Jan 21. Stratasys Completes Acquisition of Origin, Accelerating Expansion Into Mass Production Additive Manufacturing.
Origin’s resin based Programmable PhotoPolymerization (P3) technology addresses fast-growing demand for tooling and end-use parts across multiple applications.
Stratasys Ltd. (NASDAQ: SSYS) announced today it has completed the acquisition of Origin, effective as of Dec. 31, 2020. The acquisition adds Origin’s software-centric additive manufacturing solution that offers best-in-class printing technology based on digital light processing for production-oriented polymer applications.
“The completion of this acquisition marks an important milestone for Stratasys, positioning us to generate meaningful incremental revenue from a wide range of new market opportunities for mass production,” said Stratasys CEO Yoav Zeif. “I’m confident that Origin’s innovative solutions will be a key contributor to strong company growth beginning in 2021 and help us further realize our strategic goal to fortify our leadership position as the ‘first choice’ for polymer 3D printing.”
As previously indicated on December 9, 2020, the impact of the acquisition on Stratasys’ diluted non-GAAP earnings per share is expected to accelerate the company’s growth rate and be slightly dilutive to non-GAAP earnings per share in 2021, and accretive to non-GAAP earnings per share by 2023.
Based in San Francisco, Origin is pioneering a new approach to additive manufacturing of end-use parts. Origin One, the company’s manufacturing-grade 3D printer, uses Programmable PhotoPolymerization to precisely control light, heat, and force, among other variables, to produce parts with exceptional accuracy and consistency. The company works with a network of partners to develop a wide range of commercial-grade materials for its system, resulting in some of the toughest and most resilient materials in additive manufacturing. The company was founded in 2015 and is led by alumni from Google and Apple. Investors include Floodgate, DCM, Mandra Capital, Haystack, TDK Ventures, Stanford University, and Joe Montana. Learn more at www.origin.io.
Stratasys is a global leader in additive manufacturing or 3D printing technology and is the manufacturer of FDM®, PolyJet Technology™, and stereolithography 3D printers. The company’s technologies are used to create prototypes, manufacturing tools, and production parts for industries including aerospace, automotive, healthcare, consumer products and education. For more than 30 years, Stratasys products have helped manufacturers reduce product-development time, cost, and time-to-market, as well as reduce or eliminate tooling costs and improve product quality. The Stratasys 3D printing ecosystem of solutions and expertise includes 3D printers, materials, software, expert services, and on-demand parts production. (Source: BUSINESS WIRE)
05 Jan 21. LinQuest Completes Acquisition of TMC Design. LinQuest Corporation, a leader in space systems technology solutions for U.S. defense and intelligence communities, announced the acquisition of TMC Design Corporation, an advanced engineering, development, and integration company with expertise in electromagnetics, digital signal processing, and radio frequency communications. TMC Design’s systems and solutions support the U.S. Army and other national security customers in high-priority mission areas such as space-enabled cyber operations, tactical space superiority, and electronic warfare. This transaction enhances both companies’ ability to address the rapidly evolving requirements of technology-enabled multi-domain operations as a critical element of the U.S. national defense strategy.
Established in 1997, TMC Design has business operations in Las Cruces, NM, Colorado Springs, CO, Huntsville, AL, and Orlando, FL. TMC Design and its leadership team will operate as a LinQuest business unit, providing a seamless transition and uninterrupted support to customers.
“TMC Design’s corporate values and proven track record of innovation and mission focus strongly complement LinQuest’s customer-first approach and core competencies,” said Tim Dills, CEO of LinQuest. “This combination will create a compelling suite of solutions to provide all of our customers with mission-essential capabilities addressing many of our country’s most challenging national security threats.”
“This move marks a strategic investment in support of TMC Design’s capabilities and culture,” said Chris Ham, CEO of TMC Design. “Partnering with LinQuest will preserve these critical attributes while equipping us with additional resources and complementary technical capabilities to better serve the customers who have relied on us for so long.”
About LinQuest Corporation
LinQuest is a space systems technology company that provides innovative services and solutions to U.S. defense, national security, and intelligence communities that focus on the convergence of C4ISR, information, and cyber systems. These services and solutions span the integration, engineering, testing, operations, and sustainment of critical space, air, and ground systems capabilities and programs. More information can be found on the company’s website at www.linquest.com.
About TMC Design
TMC Design was established in 1997 and is headquartered in Las Cruces, NM. More information can be found on the company’s website at www.tmcdesign.com. (Source: BUSINESS WIRE)
04 Jan 21. Teledyne to Acquire FLIR Systems. Teledyne Technologies Incorporated (NYSE:TDY) (“Teledyne”) and FLIR Systems, Inc. (NASDAQ:FLIR) (“FLIR”) jointly announced today that they have entered into a definitive agreement under which Teledyne will acquire FLIR in a cash and stock transaction valued at approximately $8.0bn.
Under the terms of the agreement, FLIR stockholders will receive $28.00 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, which implies a total purchase price of $56.00 per FLIR share based on Teledyne’s 5-day volume weighted average price as of December 31, 2020. The transaction reflects a 40% premium for FLIR stockholders based on FLIR’s 30-day volume weighted average price as of December 31, 2020.
As part of the transaction, Teledyne has arranged a $4.5bn 364-day credit commitment to fund the transaction and refinance certain existing debt. Teledyne expects to fund the transaction with permanent financing prior to closing. Net leverage at closing is expected to be approximately 4.0x adjusted pro forma EBITDA with leverage declining to less than 3.0x by the end of 2022.
Teledyne expects the acquisition to be immediately accretive to earnings, excluding transaction costs and intangible asset amortization, and accretive to GAAP earnings in the first full calendar year following the acquisition.
“At the core of both our companies is proprietary sensor technologies. Our business models are also similar: we each provide sensors, cameras and sensor systems to our customers. However, our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths,” said Robert Mehrabian, Executive Chairman of Teledyne. “For two decades, Teledyne has demonstrated its ability to compound earnings and cash flow consistently and predictably. Together with FLIR and an optimized capital structure, I am confident we shall continue delivering superior returns to our stockholders.”
“FLIR’s commitment to innovation spanning multiple sensing technologies has allowed our company to grow into the multi-billion-dollar company it is today,” said Earl Lewis, Chairman of FLIR. “With our new partner’s platform of complementary technologies, we will be able to continue this trajectory, providing our employees, customers and stockholders even more exciting momentum for growth. Our Board fully supports this transaction, which delivers immediate value and the opportunity to participate in the upside potential of the combined company.” Jim Cannon, President and Chief Executive Officer of FLIR, said, “We could not be more excited to join forces with Teledyne through this value-creating transaction. Together, we will offer a uniquely complementary end-to-end portfolio of sensory technologies for all key domains and applications across a well-balanced, global customer base. We are pleased to be partnering with an organization that shares our focus on continuous innovation and operational excellence, and we look forward to working closely with the Teledyne team as we bring our two companies together to capitalize on the important opportunities ahead.”
Fourth Quarter Financial Results
In a separate press release issued today, Teledyne announced improved preliminary financial results for the fourth quarter and full year 2020. The Teledyne press release is available on www.teledyne.com. FLIR noted today that it expects to meet or exceed the full year fiscal 2020 guidance it provided on October 30, 2020.
Approvals and Timing
The transaction, which has been approved by the boards of directors of both companies, is expected to close in the middle of 2021 subject to the receipt of required regulatory approvals, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, approvals of Teledyne and FLIR stockholders and other customary closing conditions.
Evercore is acting as exclusive financial advisor and McGuireWoods LLP is acting as legal advisor to Teledyne in connection with the transaction. Goldman Sachs & Co. LLC is acting as exclusive financial advisor and Hogan Lovells US LLP is acting as legal advisor to FLIR in connection with the transaction. Teledyne has entered into a 364-day senior unsecured bridge facility credit agreement with Bank of America as sole lead arranger and administrative agent.
04 Jan 21. Vectrus Acquires HHB Systems, Advancing Physical and Digital Infrastructure Technologies within the Intelligence Community.
– Further expands reach into the Intelligence Community as a Converged Infrastructure Provider
– Enhances Capabilities in Facility Engineering, Design, and Planning, as well as Asset Management & Logistics
– Bolsters Information Technology, Network Communications Services, and Operational Technologies Competencies and Solutions
Vectrus, Inc. (NYSE: VEC) announced today that it has acquired HHB Systems, a leading provider of high-end solutions for facilities management, logistics, engineering, enterprise operations, and asset management solutions supporting Intelligence Community (IC) projects. Additionally, HHB provides information technology and cybersecurity solutions to select clients.
Founded in 2003, HHB Systems brings comprehensive and proven capabilities which advance Vectrus’ ability to deliver innovative, integrated solutions and further differentiates the company as a leader in the converged infrastructure market.
“The acquisition of HHB brings integrated solutions that support physical and digital infrastructures within the intelligence community and creates a stronger platform from which we can deliver fully converged solutions across all our clients’ missions,” said Sue Deagle, Senior Vice President and Chief Growth Officer of Vectrus. “I am delighted to welcome the talented employees of HHB to Vectrus. We look forward to building upon the HHB team’s past performance, reputation, and long-standing and trusted relationships in the Intelligence Community.”
Headquartered in Springfield, Virginia, HHB Systems has a 17-plus-year history of providing technology-enabled services and solutions to the Intelligence Community. The company has more than 50 highly skilled employees, 95% of which are cleared at Top Secret or above.
“Importantly, the acquisition of HHB further builds on our recently announced acquisition of Zenetex and together these acquisitions advance Vectrus’ transformation into a higher-value, technology-enabled and differentiated platform. The Zenetex and HHB teams work together in the Intelligence Community market today, and the expanded opportunities under Vectrus to reach our existing DoD and IC clients open the aperture to even greater growth,” Ms. Deagle concluded. Vectrus funded the acquisition from cash on hand and its revolving line of credit. (Source: PR Newswire)
04 Jan 21. Huntington Ingalls acquires unmanned business from Spatial Integrated Systems. Huntington Ingalls Industries announced Monday it has acquired the autonomy business of Spatial Integrated Systems ― its latest move to expand its unmanned prowess.
Roughly 50 employees from SIS, based in Virginia Beach, Va., joined HII’s Technical Solutions’ Unmanned Systems business group in a transaction that closed Dec. 31, HII’s announcement said. The terms were not disclosed. SIS president and CEO Sam Lewis will lead HII’s unmanned unmanned surface vessel efforts, reporting to Duane Fotheringham who leads the company’s unmanned systems business group.
“We are excited to welcome the SIS autonomy business employees to the HII family,” said Andy Green, HII executive vice president and president of technical solutions. “2020 was a significant year for HII in the unmanned systems industry, and this acquisition is the perfect complement to our existing portfolio and strategic partnerships.”
According to Huntington Ingalls, Spatial Integrated Systems have fielded its unmanned solutions ― including multi-vehicle collaborative autonomy, sensor fusion and perception ― for more than 6,000 hours on 23 vessel types. The Defense Department is using SIS unmanned technologies for intelligence, surveillance, and reconnaissance, harbor patrol, high value unit escort missions, payload delivery, mine clearance, and transporting supplies, said HII.
The move last week follows HII’s acquisition of Hydroid in March, a strategic alliance with Kongsberg Maritime; an equity investment in Sea Machines Robotics, Inc., of Boston, in July, and the groundbreaking on a new HII Unmanned Systems Center of Excellence, in Hampton, Va., in September. (Source: Defense News Early Bird/Defense News)
05 Jan 21. India sets up sale of BEML. The Indian government has initiated plans to divest an additional 26% stake in state-owned defence company BEML Limited, formerly Bharat Earth Movers Limited. The sale, which offers investors management and control of the firm, will progress through a ‘preliminary information memorandum’ issued by the Ministry of Defence (MoD) on 4 January. The sale is expected to be worth about INR10bn (USD137mi).
“The government of India has in-principle decided to disinvest 26% of the equity share capital of BEML Limited through strategic disinvestment with transfer of management control,” said the document.
The sale will downsize the government’s shareholding in BEML to 28%. It currently holds a 54% stake, with most of the remainder owned through Indian stock exchanges.
“The successful bidder could be required to undertake certain obligations… such as employee protection, asset stripping, [and] business continuity,” said the memorandum. It added that final conditions will be specified at the request for proposal stage.
The deadline for submission of expressions of interest is 1 March.
Various conditions apply to the sale including security clearances and the requirement for investors to have a minimum net worth of INR14bn.
Partnership bidding has been permitted where the lead member has a minimum 51% stake in the investment consortium, although government-owned companies are not allowed to bid.
The government confirmed its plan to sell an additional stake in BEML in 2019. Indian Defence Minister Rajnath Singh said at the time that the divestment is intended to improve BEML’s efficiencies. (Source: Jane’s)
04 Jan 21. QuantiTech Acquires Systems Engineering Group. QuantiTech LLC (“QuantiTech”), a portfolio company of Sagewind Capital LLC (“Sagewind”), announced today that it has acquired Systems Engineering Group, Inc. (“SEG” or the “Company”) from Griffon Corporation (NYSE: GFF). Financial terms of the transaction were not announced.
Headquartered in Columbia, Maryland, SEG is a leading provider of threat engineering and modeling and simulation services to the U.S. Government, primarily supporting the Naval Surface Warfare Center, Missile Defense Agency, and Office of Naval Intelligence. SEG provides advanced, physics-based threat modeling, engineering, and analytics services in support of U.S. Government requirements for weapons and missile systems development, simulation, testing, and analysis. The management team and employees of SEG will continue with the business as a part of QuantiTech.
“We are extremely excited to welcome SEG to the QuantiTech family,” said Randy Cash, Chairman of the Board of QuantiTech. “This combination brings together two companies with an extraordinary depth of talent and expertise in high-end engineering. By strengthening our capabilities in the missile defense, hypersonics, and intel markets, we will be even better positioned to continue serving the important missions of the U.S. Government.”
“As announced this past summer, SEG has been looking to partner with a new parent organization that is more strategically focused on government technical services,” said Michael Anderson, President of SEG. “We are thrilled to have found that partner in QuantiTech and are energized by the opportunities created through this combination. QuantiTech’s complementary customers and capabilities will allow us to expand our presence as a leader in threat engineering and modeling & simulation.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to QuantiTech. Chertoff Capital, LLC served as exclusive financial advisor and Dechert LLP served as legal advisor to Griffon Corporation.
About Systems Engineering Group
Founded in 1991 and headquartered in Columbia, Maryland, SEG provides sophisticated, highly technical engineering and analytic support to customers. As a leading provider of combat, radar and missile systems engineering and analysis, SEG is a key source of systems engineering expertise for the U.S. Government, specifically within missile defense, hypersonics, and intelligence analysis. For more information please visit https://www.systemsengineeringgroup.com/. (Source: PR Newswire)
04 Jan 21. QinetiQ wins £127m contract with UK Ministry of Defence. Defence contractor QinetiQ (QQ.) saw its shares climb by 2 per cent after announcing it had won a five-year contract with the UK Ministry of Defence (MoD) to provide engineering services for the Typhoon jet. The agreement is worth £127m and has been secured as part of the group’s ‘engineering delivery partnership’ (EDP) with the MoD.
QinetiQ has now amassed more than £500m-worth of orders through the EDP since it was established two years ago. The MoD is the group’s largest customer, and these long-term contracts help underpin earnings stability and visibility. QinetiQ’s testing, training and evaluation service should remain in demand as the MoD shifts towards newer capabilities on the back of the UK’s £16.5bn defence spending boost.
With the new Typhoon contract marking a strong start to the second half of its financial year, QinetiQ continues to expect low -double digit revenue growth for the full year, up from £1.1bn in 2020. (Source: Investors Chronicle)
22 Dec 20. INVISIO has today signed an agreement to acquire all the shares in Racal Acoustics Ltd, a UK-based supplier of communication and hearing protection systems for high noise environments. prior to INVISIO’s acquisition, Racal Acoustics Ltd was a subsidiary of TransDigm Group Inc.
INVISIO’s acquisition of Racal Acoustics is aligned with INVISIO’s growth strategy and their ambition to further strengthen their global market-leading position within communication and hearing protection systems. The acquisition means that INVISIO will broaden its offer with a complementary new product category, consisting of advanced and rugged hearing protection and communications headsets for environments with constant high noise, often found in larger military vehicles and around aircraft.
Under the terms of the acquisition, INVISIO will also acquire Racal Acoustics Inc, a US based sales company through which Racal Acoustics markets and sells its products to the US market. The acquisition, which is expected to close during the first quarter of 2021, is subject to regulatory approvals and customary closing conditions.
Lars Højgård Hansen, CEO of INVISIO said: “We are very excited to welcome Racal Acoustics into the INVISIO-family. The deal is a perfect fit as the two companies are largely complementary. Over many years Racal Acoustics has built a strong position for communication and hearing protection in high noise environments such as military vehicles, while INVISIO has built a strong position for users in the field. Our combined product offerings and market footprints will strengthen our world leading position as the communication and hearing protection expert for users within military, first responder and aviation markets, whether in the field or in a vehicle”.
James Ewing, Managing Director at Racal Acoustics said: “Joining INVISIO is the perfect next step to fully explore the potential in Racal Acoustics. As the companies to a large extent share the same business-DNA but target different market segments and sales channels, we have all the elements for a strong growth story and future together”.
28 Dec 20. Voyager Space Holdings Intends To Obtain Majority Stake In XO Markets + Nanoracks. Voyager Space Holdings, Inc. (Voyager) has announced the company’s intent to acquire a majority stake in XO Markets and that firm’s largest subsidiary, Nanoracks.
Nanoracks is a leading provider of commercial space services and, as part of the transaction, Voyager will be infusing significant growth capital into the business to support the continued growth of Nanoracks use of the International Space Station (ISS) on behalf of itself and its customers, and the Nanoracks Space Outpost Program for private space platforms.
Astronaut in space suit. Elements of this image furnished by NASA
Nanoracks has launched more than 1,000 projects to ISS, including microgravity research, smallsats and missions to both LEO and deep space. Nanoracks and also recently launched the first commercial airlock – The Bishop – on the SpaceX CRS-21 mission on SpaceX’s Falcon 9 rocket.
The Bishop Airlock is the first-ever commercial, permanent addition to the International Space Station, bringing five times more customer volume than currently available through the existing, government-operated airlock.
The company is also actively working toward its long-term Outpost Program, which will enable Nanoracks to own, operate and leverage commercial space stations, repurposing in-space hardware to make discoveries that will change life on Earth.
Voyager recently announced that it would be expanding its footprint within the space supply chain via the acquisition of a majority interest in The Launch Company, which would join current subsidiaries Pioneer Astronautics and Altius Space Machines. In addition to the firm’s growing subsidiary list, Voyager has also continued to increase the members of their executive team. The company recently expanded a Washington, D.C. office with the appointment of industry veteran Eric Stallmer as EVP of Government Affairs and Public Policy.
“Over the past decade my team and I have worked to grow Nanoracks from a garage-based start up into the first commercial space company with customers,” said Jeffrey Manber, CEO of Nanoracks. “We continue to push the envelope of what’s possible in commercial space. This critical leap forward takes place as we have worked closely with NASA, the European Space Agency and industry partners to equip the International Space Station with our Bishop Airlock. With Voyager, we’re confident in our expanded team’s ability to continue to deliver game-changing technology industry-wide.”
“Voyager is always on the lookout for organizations doing things differently. Our model is best suited for companies like Nanoracks, who are at the forefront of innovation and growing rapidly,” said Matthew Kuta, President and COO of Voyager Space Holdings. “With Voyager’s support, Nanoracks can continue to do what it does best: develop in-space services and technology that is poised to transform life on Earth and in space.” (Source: Satnews)
31 Dec 20. IQGeo Group to sell minority stake in RTLS SmartSpace.
“We are delighted that Investcorp have decided to consolidate their holding in the RTLS SmartSpace business,” said Richard Petti.
IQGeo Group Plc (LON:IQG) has agreed to sell its remaining 5.6% stake in its former RTLS SmartSpace business for a total consideration of £2.5m.
The transaction is with the majority owners of the business, which are tied to Investcorp Technology Partners.
It also includes provisions that would give IQGeo a partial share of any potential upside consideration if the RTLS SmartSpace business is sold on within six months of the disposal at a greater valuation.
“We are delighted that Investcorp have decided to consolidate their holding in the RTLS SmartSpace business,” said Richard Petti, IQGeo chief executive.
“The £2.5m of cash proceeds will help support our strategy as we continue to build a successful recurring revenue geospatial software business focused on telco and utility network operators.”
Previously, in December 2018, the company received £30mln for a 94.4% stake of the RTLS SmartSpace business. (Source: proactiveinvestors.co.uk)
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.