Sponsored by TCI International Inc.
03 June 21. Chemring Group PLC (“Chemring” or “the Group” or “the Company”) Interim Results For The Six Months To 30 April 2021.
- H1 performance was in line with our expectations reflecting continued strong performance in both segments, despite FX translation headwind caused by the weakening US dollar.
- Investment in the Group’s manufacturing infrastructure continues to be a key enabler to deliver improved safety performance and operational excellence. Total Recordable Injury Frequency Rate is at 0.66 versus 1.13 for the same period last year.
- Double digit growth in orders, revenue and operating profit for Roke as the market continues to be buoyant, underpinned by UK Government announced increased focus on Cyber and Electromagnetic Activities (“CEMA”), digital infrastructure, and science and technology.
- Acquisition of Cubica Group (see separate announcement published today)
- Continued progress in our US Sensors Programs of Record. Further orders received in the period for the next phase of HMDS delivery, valued at $63m, under the previously announced $200m IDIQ contract.
- Secured new long-term contracts in Countermeasures & Energetics, including Chemring Countermeasures USA receiving a five-year IDIQ contract for the supply of infra-red decoy flares and Chemring Energetics UK securing a 15 year long-term partnering agreement with Martin Baker Aircraft Company.
- Continued reduction in net debt with strong operational cash generation partially offset by scheduled capital expenditure. Net debt to underlying EBITDA of 0.5 times.
- New policy to target a medium-term dividend cover of c.2.5 times underlying EPS. Interim dividend increased by 23% to 1.6p.
- Board’s full year expectations are unchanged (at current FX rates). Approximately 92% of expected H2 revenue is in the order book as at 30 April 2021.
Michael Ord, Chemring Group Chief Executive, commented: “Chemring’s positive first half performance again demonstrates the progress that we continue to make in building a higher quality technology-based Group. With strong order cover for the full year the Group remains on track to deliver year on year growth, and the Board’s expectations for the full year remain unchanged.
Whilst our modernisation and operational excellence programmes will continue, our focus is now shifting towards the growth of our Sensors & Information segment, where our market leading positions and investment in high technology niches positions us well in this area of growing customer requirement. We are investing in our organic capabilities, both in the development of our technology and people. In addition we now have the financial flexibility to pursue both organic and inorganic growth opportunities.
The acquisition of Cubica Group is a small but important first step in driving further scale to our growing Roke business, and is further evidence of Chemring delivering against its strategy.
Whilst there may be some macro-economic uncertainty surrounding the level and timing of defence spending as a result of the Covid-19 pandemic, our multiple market leading positions and investment in high technology niches, provide attractive growth opportunities. Chemring’s long-term prospects remain strong.”
03 June 21. Aramco Venture Fund Invests Extra $500K in Drone Operator. The entrepreneurship arm of Saudi Aramco has invested a further $500,000 in a Saudi drone operator to help scale its operations to expand overseas.
Wa’ed’s first investment in FalconViz came in 2016, and the new funding will help the company grow in Europe, the US, and Africa.
The firm, based at King Abdullah University of Science and Technology (KAUST), north of Jeddah, offers a range of drone services, including 3-D surveying and mapping, inspections, construction monitoring, and data visualization.
Its drones have multiple uses including for land surveying, mining, urban development, and cultural heritage assessments. FalconViz’s clients include BCG, HSBC, Neom, and the Saudi Ministry of Culture. Its drones were also used by the city of Jeddah to survey 250,000 square meters of the historic Al-Balad Old Town neighborhood to support the city’s UNESCO World Heritage Site application.
Mohamed Shalaby, FalconViz’s co-founder and vice president of business development, said the Wa’ed investment was
“a welcome injection of funds and confidence in our offerings and business strategy. This will enable us to keep investing in our people, growing our services, and expanding our global presence across different sectors.”
Salman T. Jaffrey, the chief investment officer of Wa’ed Ventures, the venture capital arm of Wa’ed, said:
“It’s great to see FalconViz flying high. To me, it’s gratifying to see one of our earliest venture capital investments commercialize its research technologies and grow globally.”
Wassim Basrawi, managing director at Wa’ed, said: “FalconViz is a perfect example of a Saudi startup identifying and filling a market gap by delivering innovative services.”
Founded in 2014, FalconViz currently has 24 employees and is licensed by the General Authority of Civil Aviation. Wa’ed was established by Saudi Aramco in 2011 to offer loan financing activities to entrepreneurs, while its Wa’ed Ventures VC arm oversees a $200m investment fund and a portfolio of more than 30 Saudi-based companies.
In April, Wa’ed signed a collaboration agreement with the Falak Investment Hub to help drive venture capital investment in the Kingdom. Falak is a hybrid firm between a startup accelerator, co-working space, angel network, and an investment company targeting regional tech startups focusing on Saudi Arabia.
Founded in 2018 by female entrepreneur Adwa Al-Dakheel, Falak’s portfolio of startups has generated combined revenues of more than SR550m ($146.67m). Both organizations aim to exploit synergies to improve early stage and growth stage startups’ chances of success through support with training programs, market access, and mentorship.
Wa’ed also signed a memorandum of understanding in March with the Royal Commission for Jubail and Yanbu to support the creation of new startups and small and medium-sized enterprises (SMEs) in Saudi Arabia’s two largest industrial cities.
Dhahran-based Wa’ed announced in January that it had tripled the amount of money loaned to startups in the Kingdom last year. It gave out 12 loans to SMEs, up from four in 2019, with the total value surging to SR31m, compared to SR10m in 2019.
“In a very challenging year, I am proud of the Wa’ed family, which includes my team and our resilient entrepreneurs, for rising to the challenges and keeping us on track to deliver an even greater impact in 2021,” Basrawi added. (Source: UAS VISION/Arab News)
20 May 21. QinetiQ revels in a bumper order intake. The defence contractor continues to deliver, with improved sales, profitability and orders.
- Acquired assets start to show their worth
- Near-term margin pressure due to the digital transformation
QinetiQ’s (QQ.) FY2021 results leave its shareholdees with the impression that the defence contractor has not only been buying wisely, but that it will eventually derive strategic benefits from the disposal of non-core assets. The aim is to optimise profitability through a sharper focus on the growth areas of the business, but the Hampshire-based group has also effectively increased its addressable market from £8bn to £20bn per year.
Last month, the group revealed that its full-year figures would trump previous guidance and consensus expectations, but shareholders still had much to cheer on results day. It achieved organic sales growth for a fifth consecutive year, while registering its largest order intake in a decade.
While QinetiQ has not been immune to the negative effects brought about by Covid-19, its underlying operating margin held steady at 12.6 per cent. Management admits that margins could come under pressure due to the group’s ongoing digital transformation and temporary effects linked to the rationalisation of its business mix, though this is no cause for concern.
A book-to-bill ratio of 1.2 at its core EMEA services division implies that more orders were received than filled, but that may have less to do with any pandemic-linked disruptions than it does with strengthening demand. Orders stood at £866m, a 29 per cent increase on the prior year, and international revenue now represents a third of the group total, growing at an average rate of 21.6 per cent over the past five years.
Revenue increased by 19 per cent overall, with an organic growth rate of 10.0 per cent, while underlying operating profit was 14 per cent to the good at £152m. Management said that much of the improved showing was down to the impact of businesses acquired last year, namely the advanced sensing solutions business formerly known as MTEQ, training specialist NSC, and Naimuri, a specialist in software development and data analytics.
Numis has increased its EPS forecast from 22.2p to 22.5p, rising to 23.5p in FY2023.
The group is targeting “mid-single digit percentage compound organic revenue growth over the next five years”, helped along by M&A where appropriate. Unlike many other companies, the strength of QinetiQ’s balance sheet provides it with the ability to upscale its acquired businesses, a strategic plank of the growth strategy. A forecast fall in the enterprise/cash profit multiple augers well for medium-term prospects, while a forward P/E multiple of 15 is not too much to ask given the solid growth prospects. Buy.
Last IC view: Buy, 278p, 30 Sep 2020. (Source: Investors Chronicle)
01 June 21. Eaton Completes Acquisition of Cobham Mission Systems.
- Move expands Eaton Aerospace’s fuel systems offerings
- Eaton continues portfolio repositioning for higher growth, stronger margins and more consistent performance
Power management company Eaton (NYSE:ETN) today announced it has completed the acquisition of Cobham Mission Systems. Cobham is a leading manufacturer of air-to-air refueling systems, environmental systems, and actuation, primarily for defense markets. The business has a workforce of approximately 2,000 people and manufacturing facilities in the United States and United Kingdom.
“We’re excited to welcome the Cobham team to Eaton,” said Heath Monesmith, president and chief operating officer, Industrial Sector, Eaton. “This acquisition, along with our prior acquisition of Souriau-Sunbank, positions our Aerospace business well for the future. These are just two examples of ways we are repositioning Eaton’s portfolio for higher growth, stronger margins and more consistent performance.”
Eaton’s mission is to improve the quality of life and the environment through the use of power management technologies and services. We provide sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power – more safely, more efficiently, and more reliably. Eaton’s 2020 revenues were $17.9bn, and we sell products to customers in more than 175 countries. We have approximately 94,000 employees. For more information, visit Eaton.com. (Source: BUSINESS WIRE)
01 June 21. Red 6 Raises $30m in Series A at a $130m Post Cap Valuation to Solve National Security Gap in Military Training. Snowpoint Ventures Led Round In Recognition Of Pressing Need For Red 6’s Augmented Reality Technology. Red 6, a revolutionary Augmented Reality technology firm at the forefront of synthetic air combat training, is proud to announce it has closed a $30m Series A round at a $130m post cap valuation. The round was led with a $25m investment by Snowpoint ventures, an existing investor in Red 6. An additional $5m was raised from existing and new investors. “I am delighted to announce our Series A today. This funding will further support Red 6’s mission to deliver a new paradigm of military training across all the domains of air, sea and land. We are excited to have strengthened our existing relationship with Snowpoint Ventures, who share our commitment to solve training inefficiencies for our warfighters and enhance our military’s level of combat readiness and lethality,” said Daniel Robinson Founder and CEO of Red 6.
Snowpoint Ventures was formed to help address the growing misalignment between government acquisitions and emerging technology companies. “Our goal is to close the national security gaps through investments and operational expertise. Red 6 is building something truly extraordinary and they are a natural fit,” stated Doug Philippone, Co-founder of Snowpoint Ventures.
Robinson, now a proud American, has prior experience as a former Royal Air Force Tornado pilot, graduate of the UK Fighter Weapons School, and the first foreign national to fly the F-22 Raptor. Drawing upon his background, Robinson and the Red 6 team have their sights fixed firmly on solving some acutely defined pain points for the U.S. military. Specifically, they are intent on revolutionizing warfighter training by using Augmented Reality to deliver a synthetic training environment that will provide a level of realistic near peer threat training that until now, has been sorely lacking. Additionally, it will directly address the U.S. military’s pilot shortage and the overextension of resources critical to preparing aviators for the near-peer threats of the future.
“Red 6 is harnessing Augmented Reality to address the urgent demand for more efficient and effective fighter pilot training needed to face today’s national security challenges. We are happy to have the support and experience of Snowpoint Ventures in the process,” said Robinson.
For more information about Red 6 go to www.red6ar.com.
About Red 6
Red 6 was founded in 2018 by Daniel Robinson, Glenn Snyder and Nick Bicanic and is the creator of Airborne Tactical Augmented Reality System (ATARS). ATARS is the first wide field-of-view, full color demonstrably proven outdoor Augmented Reality solution that works in dynamic outdoor environments. ATARS allows Virtual and Constructive assets into the real-world by allowing pilots and ground operators to see synthetic threats in real-time, outdoors and critically, in high-speed environments. By blending Augmented Reality and artificial intelligence and using both the indoor and outdoor space around us as a medium, Red 6 has redefined the limits of how the world will experience, share, and interact with its information. (Source: PR Newswire)
01 June 21. Gooch & Housego sees industrial laser demand recover. The photonics specialist benefitted from higher demand for its lasers for semiconductor and microelectronics manufacturing.
- The company’s adjusted operating profit jumped by almost 60 per cent in the six months to 31 March
- Statutory profits were weighed down by restructuring charges
Gooch & Housego (GHH) generated a 5 per cent rise in revenue at constant currencies in the six months to 31 March, thanks to increased demand for lasers used in semiconductor and microelectronics manufacturing, as well as its products for medical diagnostics systems.
In the larger industrials business – which accounts for 45 per cent of total sales – revenue increased by 4 per cent at constant currencies to £26.6m. Higher sales of industrial lasers in Asian markets more than offset lower demand for sensing modules as large infrastructure projects were delayed.
Meanwhile, over in the life sciences division, revenue shot up by 11 per cent at constant currencies to £13.5m as the pandemic spurred demand for ventilators. Gooch & Housego acquired medical device specialist ITL in 2018, which makes a product that improves respiratory function and oxygen uptake as part of a ventilator system for patients in intensive care.
Overall, the company’s adjusted operating profit surged by 57 per cent in the first half of the year, to £5.4m, with higher sales volumes and cost cutting pushing the margin up by 3.2 percentage points to 9.2 per cent.
Gooch & Housego is consolidating its acousto-optic and precision optic manufacturing sites as part of this cost push. This process is expected to be “substantially complete” by the end of September, laying the groundwork for £1.8m of savings in 2022.
The reorganisation did lower overheads in the first half of the year, but £3.1m of restructuring charges pushed Gooch & Housego’s statutory operating profit down by almost two-fifths to £1.2m.
Excluding lease liabilities, net debt has come down by just over a quarter from the September year-end position to £4.7m, or just 0.3 times cash profits. The balance sheet is therefore in good trim to support further acquisitions and the company is “actively exploring” opportunities in the life sciences sector.
Looking at the second half of the year, the company has flagged currency headwinds, although it expects that some pandemic hurdles such as travel restrictions will ease. House broker finnCap is anticipating a full year adjusted operating profit of £13.7m, up from £11.2m in 2020.
The shares are currently trading at a pricey 31 times consensus 2022 earnings. However, Gooch & Housego’s near-term outlook is improving as industrial and medical laser demand recovers, and in the long-term, it will benefit from structural growth drivers for its ‘photonics technology’ such as the roll-out of 5G. Upgrade to buy. (Source: Investors Chronicle)
28 May 21. COMSovereign Executes on $10m Investment from The Lind Partners. COMSovereign Holding Corp. (NASDAQ: COMS) (“COMSovereign” or the “Company”), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today announced it has signed a funding agreement for gross proceeds of $10,000,000 (the “Investment”) with Lind Global Asset Management IV, LLC, an investment entity managed by The Lind Partners, a New York based institutional fund manager (together “Lind”).
“Today’s transaction provides additional liquidity for COMSovereign, allowing us to further invest in increased production across our business units. This capital will enable us to fulfil additional customer purchase orders and advance the ongoing build-out of our Tucson facility, supporting our drone and in-house radio manufacturing activities. I’m especially pleased that Lind, a significant investor in our public offering earlier this year, is demonstrating their continued confidence in COMSovereign through this new investment,” said Dan Hodges, Chairman and CEO of COMSovereign Holding Corp. “With this capital, we also are advancing our strategic acquisition efforts, including closing on the Innovation Digital transaction which brings with it immediate licensing revenue, a blue-chip roster of customers and valuable, unmatched intellectual property.”
“COMSovereign is at the forefront of ‘Made in America’ wireless 5G technology and is led by an exceptional team. That is why we invested in the company earlier this year and is why we are pleased to support their growth plans now with this additional investment,” said Phillip Valliere, Managing Director at The Lind Partners.
The Investment is in the form of a 10% Original Issue Discount convertible note in the principal amount of $11,000,000 that has a 24-month maturity and a fixed conversion price of $4.50 per share of common stock, subject to adjustment, and warrants to purchase 1,820,000 shares of common stock with an exercise price of $4.50 per share, subject to adjustment. COMSovereign is required to make monthly principal and interest payments, with interest at the rate of 6 percent per annum on the unpaid principal amount of the convertible note, commencing six months after closing. The Company has the right to make principal and interest payments, in whole or in part, in cash or in shares of common stock, subject to certain conditions, and the right to prepay the convertible note at any time with no penalty, subject to the right of the holder to convert up to 25% of the principal amount to be repaid into common stock at the lesser of the conversion price or a price per share tied to the recent market price of the common stock prior to such repayment.
Kingswood Capital Markets, division of Benchmark Investments, Inc., is acting as financial advisor for the Investment.
For more information about COMSovereign, please visit www.COMSovereign.com and connect with us on Facebook and Twitter.
About COMSovereign Holding Corp.
COMSovereign Holding Corp. (Nasdaq: COMS) has assembled a portfolio of communications technology companies that enhance connectivity across the entire data transmission spectrum. Through strategic acquisitions and organic research and development efforts, COMSovereign has become a U.S.-based communications provider able to provide 4G LTE Advanced and 5G-NR telecom solutions to network operators and enterprises. For more information about COMSovereign, please visit www.COMSovereign.com.
About The Lind Partners
The Lind Partners is an institutional fund manager and leading provider of growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind makes direct investments ranging from US$1 to US$30m, invests in syndicated equity offerings and selectively buys on market. Lind has completed more than 100 direct investments totaling over US$1bn in value and has been a flexible and supportive capital partner to investee companies since 2011. For more information, please visit www.thelindpartners.com. (Source: PR Newswire)
24 May 21. It has today been announced that Czech firearms manufacturer CZG – Česká zbrojovka Group SE – has closed on the acquisition of Colt. CZG – Česká zbrojovka Group SE – today announced that, after securing all necessary regulatory approvals from the US and Canadian authorities, it has successfully closed on its acquisition of 100% of the equity interest in Colt Holding Company LLC (‘Colt’), the parent company of the US firearms manufacturer, Colt’s Manufacturing Company LLC as well as its Canadian subsidiary, Colt Canada Corporation.
CZG and Colt are confident that the merger will bring significant operational, commercial, and R&D synergies for the combined business, which generated pro-forma aggregated annual sales in excess of US$570m in 2020 and which has more than 2,000 employees in the Czech Republic, the United States, Canada and Germany.
“With this acquisition, we have created a strategic relationship between CZG and Colt, which will bring significant opportunities for the group. We will focus on continuing to provide high quality products to our customers in a seamless manner as we harness the many synergies generated by this acquisition. We are confident that this combination will create value for our customers and shareholders alike and strengthen these iconic brands,” stated Lubomír Kovařík, Chairman and President of CZG. “This merger also confirms our commitment to the North American market which is an integral part of our growth strategy,” he added.
Thanks to this acquisition, CZG gains further production capacity and positions itself to become a leading firearms manufacturer and a key partner globally for military, law enforcement and commercial customers.
“Colt is pleased to join forces with CZG. We are proud of our heritage and believe that the strength of the combined businesses and the many synergies created by the merger will enable us to honour our roots while also securing the future of the Colt brand. We look forward to continuing to deliver our high- quality products while also investing in innovation and new product offerings in the near future. We believe in the successful connection of our corporate cultures, the proven track record of our teams and the complementary nature of the CZ and Colt brands,” stated Dennis Veilleux, President and CEO of Colt. (Source: joint-forces.com)
01 June 21. FY22 US Budget – Sightseeing Tour. We commented on BAE Systems’ Combat Vehicle business last Friday. Here, we range more widely to flag other changes that could bear on BAE, Rolls-Royce, Meggitt, Ultra Electronics and Saab. Some numbers could be seized upon and interpreted negatively or positively, but the net outcomes look benign, in our view. This note is hence for the record.
BAE Systems. The FY22 Budget funds 85 F-35 aircraft, down from 96 in both FY20 and FY21, but the original FY20 and FY21 requests were 78 and 79, respectively (Congress added aircraft), so it is hard to paint the FY22 request as a cut. The net impact on BAE is potentially slightly negative, but older F-35s may be upgraded, which blurs the picture. The US Navy’s request for ship depot maintenance rose from US$11bn in FY21 to US$11.6bn in FY22 while that for ship operations rose from US$5.5bn in FY21 to US$5.9bn in FY22, both of which look supportive for BAE’s warship repair business.
Rolls-Royce. In FY22, the 85 F-35s include 17 STOVL aircraft equipped with Rolls-Royce’s LiftSystem. In FY21, the 96 F-35s approved by Congress included 10 STOVL aircraft, so there is an incremental positive in FY22. On the other hand, only 8 V-22 Osprey are requested versus 15 in FY21 and 12 in FY20. Similarly, 10 C-130J are requested in FY22 versus 17 in FY21 and 15 in FY20. Once again, Congress added V-22 and C-130J aircraft in FY20 and FY21, so FY22 is essentially a return to normal. Both the V-22 and C-130J programmes are winding down (as are several helicopter programmes), partly to accommodate the Future Long Range Assault Aircraft which pits the Sikorsky-Boeing Defiant against the Bell V-280 Valor powered by Rolls-Royce engines. The net outcome of the above is unclear, but any impact is likely not material.
Meggitt. In FY22, the US Air Force (USAF) has asked to retire 201 aircraft, including 47 F-16s that could have Meggitt brakes (the F-16 was not sole-source) and 8 C-130H that were originally fitted with Meggitt’s brakes. Retirement of F-16 and C-130 aircraft is not a new development. We note that 17 B-1 bombers for which Meggitt supplied the brakes were retired in 2021. The USAF requested funding for 1.2m Flying Hours, a reduction of 87,000, but the latter reflects the drawdown in Afghanistan (around 66,000 hours) and the balance to bring flying hours into line with what was being achieved. However, the US Navy added 92,000 flying hours to support Carrier and Expeditionary Strike Group deployments.
Ultra Electronics. The FY22 Budget requests US$249.1m for sonobuoys, down from US$313.6m in FY20 and US$303.5m in FY21, so ostensibly a cut. However, sonobuoys are ordered under five-year Indefinite-Delivery/Indefinite-Quantity contracts, so the orders periodically placed on Ultra Electronics may smooth out the variations in the annual budget requests.
Saab. T-7 Trainer Research, Development, Test & Evaluation has trended US$236.8m in FY19, US$340.4m in FY20, US$248.7m in FY21 and now US$188.9m in FY22, but the FY22 request also has US$10.4m for Procurement. We believe the first T-7 will be delivered to the USAF in 2023 and that Initial Operating Capability is targeted in 2024, so funding looks in line with those timings. (Source: Jefferies)
31 May 21. Krauss-Maffei Wegmann acquires stake in Milrem Robotics. The participation is an important step towards the formation of a “European Center of Excellence for Military Robotics”.
The leading developer and manufacturer of military robotic land systems in Europe, Milrem Robotics, and the German systems house for main battle tanks and combat systems Krauss-Maffei Wegmann (KMW) have signed a strategic cooperation agreement. The contract provides for KMW to acquire a minority stake of 24.9% in Milrem Robotics.
Milrem Robotics will remain as an independent company.
Both companies announced they will work closely together in development of the European Center of Excellence for Military Robotics in Estonia.
The objective is to combine the know-how and expertise of both companies to develop innovative solutions to meet the requirements of future military missions involving the interaction of manned and unmanned systems.
“We intend to become the European centre of excellence for unmanned technology and robotics innovations. The partnership with
KMW facilitates further innovations for future products and services, especially in the area of the teaming of manned and unmanned systems and sensor-to-shooter solutions,” emphasised Kuldar Väärsi, CEO of Milrem Robotics.
“KMW as the European market leader for land systems and Milrem Robotics as the European market leader for unmanned land systems are an excellent fit. Our collaboration gives us the opportunity to work on innovative and new solutions that will impact the future of the defence industry. In addition, further synergies are also expected from this cooperation in the context of KNDS,” says Horst Rieder, CFO of KMW. The objective of the cooperation on the part of KMW is the integration of modern leading robotics systems into KMW’s technology systems.
27 May 21. Belcan Acquires VICTOR42, a Leader in Special Operations Forces Support and IT Solutions for the Federal Government. Belcan, LLC (“Belcan”), a global supplier of engineering, supply chain, technical recruiting, and information technology (IT) services to the Aerospace, Defense, Automotive, Industrial, and Government services markets, announced today that it has acquired VICTOR42 (or the “Company”), a leading provider of special operations support, intelligence solutions and training, and IT services for the Federal Government. Terms of the transaction were not disclosed.
This acquisition marks the 17th acquisition by Belcan under its ownership by AE Industrial Partners, LP (“AEI”), a private equity firm specializing in Aerospace, Defense & Government Services, Space, Power Generation, and Specialty Industrial markets.
VICTOR42 is among a few select companies in the U.S. with more than a decade of experience providing special operations support and IT solutions. From analytical support to intelligence and operations software subject matter expertise (SME), VICTOR42’s services and analysis are combined with advanced intelligence training to provide comprehensive support to special operations forces (SOF) around the world. Its subject matter experts have decades of real-world expertise which allows them to rapidly deliver flexible solutions crafted to meet a client’s specific requirements. The Company’s clients in the Federal Government include U.S. Special Operations Command (USSOCOM), Defense Threat Reduction Agency (DTRA), and U.S. Department of Veterans Affairs, as well as leading private companies in aerospace & defense and technology, including IBM, Palantir Technologies, CACI, and Jacobs Engineering. Based in Washington D.C., VICTOR42 performs work on six continents.
“We are excited to add a premier specialist company like VICTOR42 to our growing organization, and we look forward to working with their experienced team as we further expand our comprehensive offerings to government and defense clients,” said Lance Kwasniewski, CEO of Belcan.
“Having the backing of Belcan will be transformative as VICTOR42 looks to expand its global footprint and develop new relationships,” said Bobby Boucher, VP of Operations and Business Development at VICTOR42. “Our team is excited to embark on this next chapter of growth, and we are eager to collaborate with other Belcan professionals to deliver best-in-class solutions.”
“Belcan is the right partner for VICTOR42 going forward, and I know that our clients and employees will benefit greatly as part of this stellar organization,” said Mark Hunker, CEO of VICTOR42.
“We’re excited to support the ongoing growth of Belcan, as it continues to build its strategic presence in the government IT and defense market,” said Tyler Letarte, Vice President at AE Industrial Partners. “VICTOR42 brings a range of highly-skilled talent and capabilities to the organization, allowing Belcan to better serve its global customer base.”
Kirkland & Ellis LLP served as legal advisor and PricewaterhouseCoopers LLP was the financial advisor to Belcan. Impresa Legal Group served as legal advisor to VICTOR42.
Belcan is a global supplier of engineering, supply chain, technical recruiting, and IT services to customers in the aerospace, defense, automotive, industrial, and government sectors. Belcan engineers better outcomes for customers – from jet engines, airframe, and avionics to heavy vehicles, automobiles, and cybersecurity. Belcan takes a partnering approach to provide solutions that are adaptable, integrated, and value-added, and has been earning the trust of its customers for over 60 years. For more information, please visit www.belcan.com.
VICTOR42 a special operations forces (SOF) intelligence and technology company that supports federal and corporate clients with analytical, operational, and technical support requirements worldwide. A Service-Disabled Veteran-Owned Small Business (SDVOSB), VICTOR42 has more than a decade of critical, specialized, and classified experience organized into five service offerings: Special Operations Support, IT Services, Cyber Security Consulting, Management and Strategic Consulting, and Intelligence Solutions and Training. For more information, please visit www.victor42.com/
About AE Industrial Partners
AE Industrial Partners is a private equity firm specializing in Aerospace, Defense & Government Services, Space, Power Generation, and Specialty Industrial markets. AE Industrial Partners invests in market-leading companies that can benefit from its deep industry knowledge, operating experience, and relationships throughout its target markets. AE Industrial Partners is a signatory to the United Nations Principles for Responsible Investment. Learn more at www.aeroequity.com. (Source: PR Newswire)
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.