Sponsored by TCI International Inc.
www.tcibr.com
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28 Sep 21. Anduril Seeks Covert Sensing Capability With New Acquisition. Defense Technology company Anduril Industries purchased Copious Imaging in a move to bolster its force protection portfolio. Defense technology business Anduril Industries announced the acquisition of Copious Imaging Tuesday morning, a buy that adds a covert sensing option to the company’s growing force protection portfolio. The acquisition adds passive sensing capabilities into Anduril’s current AI-enabled technology offerings that detect and classify both drone and ground threats at military bases around the world. The advantage of passive sensing is that, unlike typical radar, it’s harder to detect because it doesn’t emit large amounts of radiation. That’s a critical capability as the US military prepares to fight on increasingly distributed battlefields against adversaries with increased electronic warfare tools.
“The ability to detect and counter these threats in a much more covert way that is much harder to defeat is absolutely critical,” Brian Schimpf, co-founder and CEO of Anduril, told Breaking Defense ahead of the announcement. “So when we think about how this passive sensing fits into where we are today, most of the focus … is very much around, how do we provide that capability that is going to be needed for every expeditionary troop, every tactical group going out, going forward with [the] least [electronic] signature as possible.”
Schimpf expects Copious Systems’ passive sensing technology, known as Wide-Area Infrared Sensing with Persistence (WISP), to be an “integral option” to “basically everything we have going forward,” with Copious functioning essentially as the company’s imaging arm. According to the Anduril press release, integrating WISP sensors onto radar-based systems can improve accuracy or be used to replace radars in contested environments.
Anduril has had success selling counter-drone and counter-intrusion technology for protection at military bases across the world. The WISP technology can be used to complement a radar system or as an alternative, depending on the customer’s needs. But the primary use cases will be focused on that base-protection mission.
“Where the Copious technology really shines is there’s a lot of installations … where they can’t actually have radar blasting at those sensitive things,” Schimpf said.
Copious, based in Lexington, Mass., is a spin off of the Massachusetts Institute of Technology’s Lincoln Lab. Anduril would not disclose the terms of the deal.
“Joining forces with Anduril will help get our technology out to the field faster and at greater scale, safeguarding our critical infrastructure and protecting our security forces to make America and its allies safer,” Bill Ross, CEO of Copious, said in the announcement. “It’s a great fit because Anduril and Copious Imaging share a common mission to engineer the most advanced AI-enabled sensing technology for the United States Department of Defense. Together, we can pursue that mission even more effectively.”
Anduril’s acquisition of Copious comes several months after it also purchased Georgia-based Area-I, which produces air launched effects. That acquisition expanded Anduril’s unmanned systems portfolio. Earlier this year, the Pentagon’s Silicon Valley outreach arm, the Defense Innovation Unit, awarded Anduril a 5-year, $99 m contract that allowed the military services to purchase counter-drone capabilities.
“We have a lot of conviction around where the technology could go and, if it existed, what potential it would have. For a company like Copious where they’ve been largely bootstrapped, they’ve had to self-fund a lot of their R&D or get government funding on this, it is harder to realize that ambition around [the] roadmap of technology,” Schimpf said. “When we acquire a company like this, the idea is we want to put money into to so it can realize advanced applications, so that we can develop new ways of sensing.” (Source: glstrade.com/Breaking Defense.com)
27 Sep 21. Harris Williams Advises Summit Interconnect, Inc. on its Sale to Affiliates of Lindsay Goldberg. Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Summit Interconnect, Inc. (Summit), a portfolio company of HCI Equity Partners (HCI), on its sale to affiliates of Lindsay Goldberg. Summit is a leading provider of complex printed circuit boards focused on defense, space and high-performance commercial sectors in the North American market. The transaction was led by Chris Rogers, Chris Smith, Evan Clark and Elliot Cave of the Harris Williams Aerospace, Defense & Government Services (ADG) Group and John Arendale and Jenson Dunn of the firm’s Industrials Group.
“In partnership with HCI, Shane Whiteside, president and CEO, and the Summit team have built a world-class PCB technology and advanced manufacturing platform that today is a fast-growing strategic supply chain partner to the market’s leading defense primes,” said Chris Rogers, a managing director at Harris Williams. “This transaction is indicative of high investor interest in the defense and space end markets and we look forward to watching the company’s continued success in partnership with Lindsay Goldberg.”
“Summit represents another great outcome for Harris Williams in the defense electronics sector, where long-term customer funding priorities provide a strong foundation for future growth,” added Chris Smith, a director at Harris Williams.
“By working with professionals from the Harris Williams ADG Group and Industrials Group, we were able to communicate our unique perspectives and understanding of Summit’s most compelling end market opportunities as well as its differentiated operational capabilities,” said John Arendale, a managing director at Harris Williams. “The company has found a great partner and we are proud to have achieved an optimal outcome for all parties.”
Summit is a leading provider of complex printed circuit boards focused on fast growing defense and high-performance commercial sectors in the North American market. Summit offers solutions ranging from advanced cutting-edge prototyping to complex high mix, low-to-mid volume production. Summit’s facilities are located across California, Illinois and Toronto.
HCI is a lower-middle market private equity firm focused on transformational consolidation strategies in the defense, distribution, manufacturing and technical service markets. In partnership with industry veteran Shane Whiteside, HCI orchestrated the acquisition of five founder-owned businesses to create a leader in the high reliability printed circuit board market, while growing revenues by over 500% during the investment period. HCI is headquartered in Washington, D.C.
Lindsay Goldberg is a private investment firm that focuses on partnering with families, founders and management teams seeking to actively build their businesses. Since 2001, Lindsay Goldberg has raised more than $17 bn of equity capital and has invested in over 50 platform companies and over 250 follow-on opportunities. The firm focuses on industries that have demonstrated resilience across economic cycles, including industrials, business, government and financial services, and healthcare in North America and Western Europe. Lindsay Goldberg takes a relationship driven approach and is supported by its global network of affiliate partners.
Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).
The Harris Williams ADG Group offers strategic advice to a global base of leading aerospace, defense and government services clients. For more information on the ADG Group and other recent transactions, visit the ADG Group’s section of the Harris Williams website.
The Harris Williams Industrials Group has experience across a variety of sectors, including advanced manufacturing; building products; chemicals and specialty materials; industrial technology; and packaging. For more information on the firm’s Industrials Group and other recent transactions, visit the Industrials Group’s section of the Harris Williams website.
Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: ). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business. (Source: BUSINESS WIRE)
27 Sep 21. Griffon Corporation to Explore Strategic Alternatives for Telephonics Corporation. Griffon Corporation (“Griffon” or the “Company”) (NYSE:GFF) announced today that its Board of Directors has authorized a review of strategic alternatives for Griffon’s subsidiary Telephonics Corporation (“Telephonics”).
Telephonics is recognized globally as a leading provider of highly sophisticated intelligence, surveillance and communications solutions that are deployed across a wide range of land, sea and air applications. Telephonics designs, develops, manufactures and provides logistical support and lifecycle sustainment services to defense, aerospace and commercial customers worldwide.
“Telephonics, founded in 1933, has been a trusted provider of defense electronics to the United States and its allies, with a distinguished history of technical accomplishments in maritime radar and aviation systems,” said Ronald J. Kramer, Griffon’s Chairman and Chief Executive Officer. “Griffon is evaluating strategic alternatives for Telephonics to increase long-term value for our shareholders, while creating enhanced growth opportunities for Telephonics.”
Lazard is acting as financial advisor and Dechert LLP as legal counsel to Griffon for the evaluation of strategic alternatives for Telephonics. (Source: BUSINESS WIRE)
27 Sep 21. Mercury Systems to acquire Avalex Technologies Corporation.
- Continues to scale Mercury’s global avionics and mission systems business
- Complementary capabilities enhance position at forefront of military digital convergence
- Strong growth profile driven by platform modernization, supply chain delayering, innovative products
- Advances Mercury’s display offerings to include integrated smart displays
- Broadens mission processing capabilities, adding communications management
Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a leader in trusted, secure mission-critical technologies for aerospace and defense, today announced that it has signed a definitive agreement to acquire Avalex Technologies Corporation (“Avalex”). Based in Gulf Breeze, Fla., Avalex is a provider of mission-critical avionics, including rugged displays, integrated communications management systems, digital video recorders, and warning systems.
Pursuant to the terms of the agreement, Mercury will acquire Avalex for all cash, subject to net working capital and net debt adjustments. The acquisition is expected to be treated as an asset sale for tax purposes. The acquisition and associated transaction expenses are expected to be funded through a combination of cash on hand and Mercury’s existing revolving credit facility.
Avalex is currently expected to generate approximately $40 m in revenue for the twelve months ending December 31, 2022, with adjusted EBITDA margins of approximately 25%. The acquisition is expected to be immediately accretive to adjusted EPS.
“Avalex’s product and technology portfolio is highly complementary to Mercury’s existing offering,” said Mark Aslett, Mercury’s president and chief executive officer. “With deep expertise in integrated displays, digital video recorders, and communications management, their suite of innovative avionics solutions uniquely position the Company to address and enable the growing demand for digitally converged solutions in the C4I and platform/mission management markets. Like our previous acquisition of Physical Optics Corporation, Avalex is also experiencing accelerated growth due to their strong product offerings and supply chain delayering by the Government. Finally, we see strong alignment in our strategies and vision, as well as our cultures, values, and commitment to innovation.”
“Mercury is building an impressive business in the platform and mission management domain, and I believe Avalex will be an excellent complement to their portfolio,” said Tad Ihns, chief executive officer of Avalex. “Together we will be able to deliver one of the widest and most advanced portfolios of mission subsystems to a broader set of customers. We look forward to joining the Mercury team.”
The acquisition is subject to customary closing conditions, including approval pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is currently expected to close during Mercury’s fiscal 2022 second quarter ending December 31, 2021.
Mercury envisions, creates and delivers innovative technology solutions purpose-built to meet its customers’ most pressing high-tech needs. For more information, visit mrcy.com or contact Mercury at (866) 627-6951 or .
Mercury Systems – Innovation That Matters®
Mercury Systems is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Headquartered in Andover, Mass., the Company delivers solutions that power a broad range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. The Company envisions, creates and delivers innovative technology solutions purpose-built to meet customers’ most-pressing high-tech needs, including those specific to the defense community. To learn more, visit mrcy.com, or follow us on Twitter.
27 Sep 21. Houlihan Lokey announced that ViON Corp. has divested its as-a-Service (aaS) business to Peraton, a portfolio company of Veritas Capital. The transaction closed on September 21, 2021. Founded in 1980 and based in Herndon, Virginia, ViON is a solutions provider with a deep technology portfolio, including high performance computing, storage, compute, network, and artificial intelligence. Enterprise customers have utilized the ViON Infrastructure as-a-Service (IaaS) and direct purchase delivery models to accelerate IT modernization. The company specializes in designing, delivering, and maintaining IT infrastructure for enterprise organizations, from the data centers to the edge throughout the federal government, public sector, and commercial markets. The company’s IaaS business is a pioneer in the development and delivery of “consumption-based” enterprise IT aaS for customers that require high data/computing needs such as DISA, NIH, USPTO, and classified customers. Moreover, the company has developed a proprietary ViON MarketPlace® platform that enables customers to procure and manage their IaaS solutions from end to end across multiple OEMs with a single secure interface. ViON combines managed services with its proprietary technology suite that leverages technology and workforce requirements for customers. Peraton drives missions of consequence spanning the globe and extending to the farthest reaches of the galaxy. As the world’s leading mission capability integrator and transformative enterprise IT provider, Peraton delivers trusted and highly differentiated national security solutions and technologies that keep people safe and secure. Peraton serves as a valued partner to essential government agencies across the intelligence, space, cyber, defense, civilian, health, and state and local markets. Every day, its employees do the “can’t be done,” solving the most daunting challenges facing its customers. Veritas is a longstanding technology investor with a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the healthcare, national security, software, education, aerospace and defense, government services, communications, and energy industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.
Houlihan Lokey served as the exclusive financial advisor and marketed, structured, and negotiated the transaction on behalf of ViON.
Houlihan Lokey’s Aerospace, Defense & Government (ADG) practice within the global Industrials Group is a leading M&A advisor to aerospace, defense, and government services companies. Since 2020, the team has closed more than 40 transactions worth nearly $9 bn in enterprise value. The ViON transaction announcement marks the 20th ADG deal so far this year. With a staff of approximately 30 investment bankers in Washington, D.C., London, and Los Angeles, Houlihan Lokey’s ADG practice is among the largest dedicated industry banking groups worldwide. In 2020, the Industrials Group was once again ranked as the No. 1 M&A advisor for all U.S. industrial transactions, according to Refinitiv.
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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.
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