Sponsored by TCI International Inc.
25 Aug 22. ATLAS Space Operations Secures $26m in Series B Funding Led by Mitsui. ATLAS Space Operations, a global leader in cloud-based space communications solutions, today announced $26m in Series B Funding led by Mitsui & Co., Ltd. The investment round reaffirms confidence in ATLAS’ Ground Software as a Service™ (G-SaaS) approach as a critical solution within the space economy.
The funding round is a part of strategic initiatives for both Mitsui and ATLAS. For ATLAS, this investment accelerates its plan for international growth, as well as its Ground Software as a Service business model. This is ATLAS’ industry disruptive software (Freedom™) solution which integrates complex disparate networks for government and commercial clients across a federated network.
For Mitsui, its investment in ATLAS further demonstrates the corporation’s commitment to its space portfolio. Mitsui has identified an area of focus for innovative companies that provide services to satellite operators. In 2018, Mitsui acquired a minority stake in BlackSky Global followed by an acquisition of Spaceflight, Inc, a U.S. satellite rideshare service provider, in 2020. The investment in ATLAS advances Mitsui’s position in the space industry as one of its new targeted growth areas.
Sean McDaniel, ATLAS Co-founder and CEO, stated, “A strategic partnership with Mitsui validates ATLAS’ position as a global leader in satellite communications services. This investment well capitalizes the company to accelerate growth in key areas of commercial and US government markets for which our services are in high demand. With this new partnership, ATLAS can expand its team to provide enterprise-level Ground Software as a Service solutions for the DoD Hybrid Space Architecture while increasing our market share in the private sector with our low risk, high-end services.”
Kazutomi Shigeeda, General Manager of Space Business Department in Mitsui, stated, “This investment in ATLAS expands our space business as a service provider for satellite operators. We strongly believe that ATLAS Ground Software as a Service can maximize the value of the ground stations and integrate other governmental and commercial ground station networks. In the future, we consider that ATLAS will be able to integrate satellite data relay networks as part of its own network, and it will lead us to the next generation satellite-ground communication infrastructure business. In order for ATLAS to achieve its vision, we will support its growth in collaboration with our space business portfolio and by utilizing Mitsui’s industrial network.”
Mitsui is joined in this funding round by investments including Beringea, as well as investments from foundational investors: Boomerang Catapult, Rise of the Rest, VCapital, Northern Michigan Angels, Harmonix, Wakestream, and Grand Ventures. The continued interest and commitment from investors is a testament to the critical link ATLAS provides in connecting humanity through space. (Source: BUSINESS WIRE)
24 Aug 22. Rolls-Royce-backed Reaction Engines plots flight-path to £1bn public listing. In a presentation to investors seen by Sky News, Oxfordshire-based Reaction Engines said it envisaged that a listing as early as 2024 could value it at between £1bn and £2bn.
A British aerospace company backed by Boeing and Rolls-Royce Holdings is plotting a flight-path towards an eventual public flotation.
Sky News has learnt that Oxfordshire-based Reaction Engines has told shareholders that it intends to raise a pre-IPO round of funding in about 18 months, paving the way for the company to sell shares publicly.
In a presentation to investors last month, Reaction Engines said it could seek a listing as soon as 2024, although such a move remains conceptual rather than the subject of a specific plan. It said it envisaged that a listing could value the business at between £1bn and £2bn.
The company, which was established in 1989 by a trio of entrepreneurs who became nicknamed ‘the three rocketeers’, is developing a series of propulsion systems called SABRE, with potential applications in hypersonic flight and space access.
Employing more than 200 people in the UK and Denver, Colorado, Reaction Engines has received funding from the UK Space Agency, European Space Agency and DARPA, the US military’s advanced projects agency.
Boeing’s venture arm, BAE Systems and Rolls-Royce are also shareholders.
A £35m funding round in the process of being closed is expected to value Reaction Engines at approximately £320m, according to the investor presentation.
‘Exploring multiple future options’
Responding to an enquiry from Sky News, a spokesman for the company said: “Reaction Engines’ near-term focus is on building a successful private business and developing applications for its unique technology in high-speed flight and a range of commercial opportunities.
“The company is exploring multiple future options for raising capital but there are no firm plans for an IPO at this time.”
Last year, Reaction Engines unveiled its first commercial spinout in the form of a collaboration with the venture investors IP Group to develop products to facilitate the use of ammonia and hydrogen fuels in hard-to-decarbonise applications such as aviation, shipping and power generation.
It recently announced details of a joint programme being undertaken with Rolls-Royce, the Royal Air Force’s Rapid Capabilities Office, the UK Government’s Defence Science and Technology Laboratory and the UK National Security Strategic Investment Fund (NSSIF) to enhance UK defence capabilities through hypersonic technologies. (Source: News Now/https://news.sky.com/)
24 Aug 22. MilDef upgrades its financial growth target. As a consequence of the defense market’s development in combination with MilDef’s positioning and future potential, the company’s board raises the growth target from at least 15% per year to at least 25% per year.
The new growth target is based on the company’s historic development, analysis of recently won framework agreements, and future business opportunities on the defense markets where MilDef aims to do business. The current growth target of at least 15% yearly growth is now upgraded to at least 25% yearly growth. The upgraded growth target is effective immediately. Other financial targets remain unchanged and are now as follows:
- Growth. At least 25% growth per year. MilDef’s objective is that revenue will, over time, grow by at least 25 percent per year, including acquisitions.
- Profitability. At least 10% EBITDA-margin. MilDef’s objective is for the operating profit margin (EBITDA) to, over time, amount to at least 10 percent.
- Capital structure. The net debt shall not exceed 2.5x EBITDA. MilDef’s objective is that the interest-bearing net debt shall not exceed 2.5x operating profit (EBITDA), more than temporarily.
- Dividend policy. Distribute 20–40% of the net profit. MilDef aims to distribute 20–40 percent of the profit after tax. However, the needs for MilDef’s long-term development, capital structure and prevailing market conditions must be considered.
23 Aug 22. Precision Aviation Group, Inc. Enters Into a Definitive Agreement to Acquire PTB Group. GenNx360 Capital Partners (“GenNx360”) announced today that its portfolio company, Atlanta-based Precision Aviation Group, Inc. (“PAG”), a leading provider of products and value-added services to the aerospace and defense industries, has entered into a definitive agreement to acquire PTB Group (PTB). PTB is listed on the Australian Securities Exchange (ASX: PTB) and the transaction is currently scheduled to close in the 4th quarter of 2022, post receiving required shareholder and regulatory approvals.
PTB provides maintenance, repair, and overhaul services (MRO) on Pratt & Whitney PT6 and Honeywell TPE331 engines, leases engines and airframes, and provides aviation supply chain services. PTB is made up of the following entities: Pacific Turbine USA Group (a/k/a Prime Turbines) with locations in Texas, Arizona, Florida, and Pennsylvania, Pacific Turbine Brisbane and Pacific Turbine Leasing, both in Brisbane, Australia and International Air Parts located in Sydney, Australia.
Daphne Dufresne, the GenNx360 Managing Partner who leads the PAG investment said, “I am pleased to assist the PAG team on its continued positive growth trajectory. The PTB acquisition is highly strategic, and we are excited about the expansion of PAG’s Engine Services Capabilities and increasing their market share in this vertical. This strategic expansion is a testament to PAG’s management team and their strong execution.”
“We are excited about adding PTB to the Precision Aviation Group of Companies. The addition of PTB increases PAG’s repair stations to 20 worldwide, expands our Engine Services Division with the addition of the PT6 and TPE331 engines, and significantly enlarges our Supply Chain Services business. Stephen Smith and his team, like PAG, are focused on exceptional customer service and exceeding customer expectations. We look forward to this partnership,” said David Mast, President and CEO of PAG.
Stephen Smith, PTB’s Managing Director and CEO said, “We are pleased to be entering into this definitive agreement with PAG and believe they will be a good future owner of the Company. PAG is committed to continuing to expand our products and services and ensuring continued opportunities for our workforce of approximately 150 people. PAG has a shared vision with PTB, and I see an exciting future ahead.”
“Our interest in PTB is a continuation of the PAG strategy to increase the company’s repair portfolio through synergistic acquisitions and to better serve our customers. This investment would be the seventh PAG bolt-on executed under GenNx360’s ownership”, said Pratik Rajeevan, GenNx360 Principal on the transaction.
About Precision Aviation Group
PAG is a leading provider of products and value-added services to the aerospace and defense industry worldwide. With 16 Repair Stations globally, and over 650,000-square-feet of sales and service facilities. PAG uses its distinct business units and customer-focused business model to serve aviation customers through two business functions – Aviation Supply Chain – and its trademarked Inventory Supported Maintenance, Repair and Overhaul (ISMRO®). PAG provides MRO and Supply Chain Solutions for Fixed and Rotary-wing aircraft. PAG subsidiaries have MRO and manufacturing capabilities on over 150,000 products focused on 4 verticals – Avionics, Components, Engines and Sub-Assembly/DER/Manufacturing Services. (www.precisionaviationgroup.com). PAG is owned by global investment firm GenNx360 Capital Partners (www.gennx360.com).
About PTB Group
PTB Group is an ASX listed aviation company which provides the following services globally:
- Maintenance, repair and overhaul services (“MRO”) services for Pratt & Whitney PT6 and Honeywell TPE331 Engines
- Aircraft/Engine Leasing
- Aircraft and engine related supply chain services.
PTB Group employees over 150 personnel and has a diverse customer base throughout the world including Australia, North and South America, Asia and the Pacific Islands. (www.pacifcturbine.com.au) and (www.primeturbines.com).
About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on acquiring middle market business-to-business companies. GenNx360 invests in companies with proven and sustainable business models in expanding industries, with the objective of implementing value-enhancing operational improvements to accelerate growth, deliver efficiencies and generate strong financial returns. Target industries include aerospace & defense, business & industrial services, automation & industrial technology, packaging products, industrial machinery and components, equipment services, environmental services, and food ingredients/equipment/services. GenNx360 was founded in 2006 and is headquartered in New York City. www.gennx360.com (Source: PR Newswire)
19 Aug 22. Taylor Devices, Inc. (NASDAQ SmallCap: “TAYD”) announced today that it had 4th quarter sales of $9,657,530, up from last year’s 4th quarter sales of $7,260,216. Sales for the full year of $30,866,582 were significantly up from last year’s level of $22,509,641. Net income for the 4th quarter of $1,515,034 was significantly up from last year’s 4th quarter net income of $59,276 with net income for the fiscal year of $2,239,423, also significantly up from last year’s fiscal year net income of $1,062,895.
“The post pandemic market recovery that we started to see at the end of FY21 continued in FY22, particularly in the markets that our Structural products serve where $6.1m or 73% of the $8.4m increase in sales over last year was realized,” said Tim Sopko, CEO. He continued, “All three of our customer product groups; Aerospace/Defense, Structural and Industrial, finished at levels greater than their respective averages over the prior five years for bookings, sales and backlog which is indicative of the overall relative improvement across the business.” He continued, “Full year net profit finished at $2.2 m or 7.3% of sales vs. last year’s $1.1 m or 4.7% of sales.” He added, “As FY21 net profit included almost $3 m of U.S. federal government financial assistance due to the COVID-19 pandemic vs the $54 thousand received this year, the improvement in FY22 over FY21 is significantly better as can be seen at the operating profit level.” He continued, “Unprecedented escalation of material costs, particularly steels, challenged our profitability in FY22 with the negative impact more significant for orders that were in our backlog at the start of the year as they were priced prior to the unprecedented increases.” He concluded, “We enter FY23 with a very strong firm order backlog of $23.7 m as compared to $22.0 m the prior year. This, supported by our continued investments in our people, technology, processes and facilities positions us well to continue successfully on our profitable growth journey in FY23.”
Taylor Devices, Inc. is a 67-year-old company engaged in the design, development, manufacture & marketing of shock absorption, rate control and energy storage devices for use in various types of vehicles, machinery, equipment & structures. The company continues to target growth in the domestic Aerospace and Defense market as well as global Structural Construction and Industrial markets. (Source: PR Newswire)
22 Aug 22. Thoma Bravo closes in on $729m deal for Australia’s Nearmap. Aerial imagery company Nearmap Ltd (NEA.AX) said on Monday it agreed to an A$1.06bn ($728.5m) takeover offer from Thoma Bravo L.P, becoming the latest technology firm that the U.S. private equity firm has bet on in recent months.
The A$2.10-per-share offer received last month represented a premium of nearly 39% to the stock’s closing price on Aug. 12, a day before the offer was disclosed. Shares of Nearmap jumped 5.9% to A$2.08, hitting their highest level since November, 2021.
“The Board believes the proposed all-cash offer represents attractive value and provides an immediate opportunity for shareholders to realise certain value at a significant premium to the market,” Nearmap Chairman Peter James said.
Thoma Bravo did not immediately respond to a Reuters request for comment.
Nearmap’s shares have lost more than half their value since hitting a peak in 2019, making the firm an attractive target for U.S.-based PE firms that have lately shown increased interest in discounted purchases Down Under.
Thoma Bravo, whose assets under management total more than $114bn, has been on a shopping spree for cyber-security firms, with its acquisitions including Sophos, Proofpoint and Sailpoint Technologies.
Earlier this month, it signed a $2.4bn deal for Ping Identity (PING.N), yet another software company whose formerly high-flying valuation has tumbled in the last couple of years.
Britain’s Darktrace Plc (DARK.L) confirmed last week that it was in the early stages of discussions with Thoma Bravo regarding a possible cash offer. Nearmap, whose offerings are used in surveillance, conducts aerial surveys that capture wide-scale urban areas in Australia, New Zealand, United States and Canada. The company is currently involved in a patent infringement litigation with U.S.-based rival EagleView. Nearmap’s board unanimously recommended that its shareholders vote in favour of the deal at a scheme meeting expected to be held in November. ($1 = 1.4550 Australian dollars) (Source: Reuters)
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.