Sponsored by TCI International Inc.
www.tcibr.com
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06 Jan 23. SwissDrones Secures Growth Funding from Seattle. SwissDrones, a global manufacturer of long-range uncrewed helicopter systems for inspection, surveillance and public safety applications, announced that it has secured additional 7-figure funding in a round led by DiamondStream Partners, an aviation and aerospace venture capital firm, with participation from existing investors.
SwissDrones plans to use the funding to accelerate product development and expand global go-to-market activities.
“We see SwissDrones as leaders in bringing next-generation aviation technology to critical use cases in infrastructure inspection, aerial surveillance and public safety,” said David Spurlock, Managing Director of DiamondStream Partners. “The combination of the payload/range of the aircraft, a focus on customer service needs, and a platform that will enable high levels of asset utilization are set to bring disruptive economics to catalyze growth in these market segments. We are excited to support the company as it grows as a leader in this space and brings tremendous value across the sector.”
Designed to replace crewed helicopters, SwissDrones provides a safe and cost-effective aerial intelligence solution for a wide range of applications, including infrastructure inspection, surveillance and public safety missions beyond visual line of sight (BVLOS). SwissDrones aircraft emit up to 95 percent fewer CO2 emissions than crewed helicopters at significantly reduced operating costs and without putting flight crews at risk. The systems allow for the integration of high-end sensor payloads of up to 40 kg (88 lbs) and enable long-range missions day and night with a flight endurance of multiple hours. SwissDrones’ aircraft are currently in operation across Asia, Europe, and North America.
“We are very happy to have DiamondStream Partners as a new investor,” said Ulrich Amberg, CEO of SwissDrones. “Our team looks forward to leveraging their vast entrepreneurial and operational experience in the aviation and aerospace industries as we strive to transform the way aerial intelligence is gathered in crucial applications worldwide.”
To expand its capabilities and meet customer demand, SwissDrones collaborates with civil aviation authorities worldwide to secure regulatory approvals and flight authorizations, allowing for enhanced mission-specific operations.
The company is among the first organizations that have obtained a European drone operator license, the European Union Aviation Safety Agency (EASA) Light UAS Operator Certificate (LUC). The certificate allows SwissDrones to self-authorize flight operations of its aircraft across EASA countries, including BVLOS operations, within the limits of the certificate. It is the highest authorization achievable under current European drone regulations.
The SwissDrones SDO 50 uncrewed helicopter platform has also received a Special Airworthiness Certificate (SAC-EC) from the FAA in the US. Additional regulatory approvals will be announced in the coming months.
About SwissDrones
SwissDrones manufactures and operates long-range uncrewed helicopter systems for missions beyond visual line of sight (BVLOS). Its unique twin-rotor aircraft are designed to replace crewed helicopters at significantly reduced costs and lower carbon emissions. They can operate in challenging conditions, day and night, without exposing crews to risk.
SwissDrones was founded in 2013 and headquartered in Zurich, with manufacturing facilities in Buchs. The company has been named a Top 50 Global UAV Enterprise by the World UAV Federation and a Top 40 Civil Drone Platform Manufacturer by Drone Industry Insights. (Source: UAS VISION)
05 Jan 23. Highlander Partners Announces the Acquisition of DZYNE Technologies, a Leading Designer and Developer of Advanced Unmanned Aircraft Systems.
Highlander Partners, L.P. (“Highlander”), a leading private investment firm, today announced the acquisition of DZYNE Technologies (“DZYNE”). DZYNE is a high-growth technology firm focused on designing and manufacturing a variety of cutting-edge Unmanned Aircraft Systems (“UAS”) for the U.S. Department of Defense (“DoD”) and various other domestic and international government agencies.
Since its inception in 2012, through considerable investment and advanced research and development, DZYNE has pushed technology boundaries and brought significant innovation to the UAS industry. DZYNE has focused on developing UAS platforms and a portfolio of complementary technologies that provide its systems with autonomous capabilities and allow for rapid manufacturing. Specializing in advanced intelligence, reconnaissance, and surveillance (“ISR”) capabilities but with technologies capable of providing a broad range of solutions, DZYNE has grown into a leader in long endurance, highly technical UAS solutions which are in use worldwide. DZYNE supports its UAS platforms with proprietary artificial intelligence technologies that provide its aircraft with advanced full motion video and video processing, autonomous navigation, and targeting and tracking capabilities.
The global threat environment is quickly changing how the U.S. and its allies execute military operations. Recent global events have shifted the focus to near-peer threats, which require advanced UAS capabilities geared toward contested and denied airspace operations. These threats are driving demand for unmanned drones that are able to operate for extended periods, perform multiple missions, and be expendable when needed. The DoD has established a goal that over half of its aircraft fleet will be unmanned by 2030 and much of this growth will be delivered by modular, long-endurance unmanned aircraft.
In 2022, High Point Aerotechnologies (“High Point”) was formed as a division of Highlander to assist in civilian and military defense investments specifically related to the rapidly evolving UAS/Counter-UAS (“C-UAS”) sectors. Highlander has quickly made significant progress with this initiative. DZYNE represents Highlander’s second related acquisition and establishes its UAS platform, complementing the C-UAS platform announced in late 2022. The assembled High Point team now consists of a variety of established leaders with backgrounds in defense, government, and technology, each of whom will assist DZYNE on tactical opportunities, government relations, regulatory and legislative matters, emerging technologies and growth initiatives.
The existing management shareholders will maintain a significant ownership stake in DZYNE going forward and continue to lead the company. Dr. Thomas Strat, CEO of DZYNE, commented, “The DZYNE team is thrilled to join forces with Highlander to continue the growth of our company and our flagship UAS platforms. We believe that Highlander and the focused High Point team bring the necessary government and military relationships, industry experience, manufacturing and operational expertise, and long-term strategic approach to support us in driving DZYNE to the next level.”
Matt McCue, Co-Founder and President of DZYNE commented, “We have spent a decade developing some of the leading UAS platforms in the world with cutting-edge technological capabilities. Given the current global political situation, the need for advanced UAS capabilities is more pressing than ever. We believe DZYNE’s solutions provide the DoD and its allies with the relevant capabilities needed to protect lives moving forward. Highlander and its High Point division share our vision and we look forward to partnering with them to continue to rapidly grow DZYNE and our worldwide impact.”
“We have been keenly focused on developing a leading presence in both the UAS and Counter-UAS markets,” commented Ben Slater, Partner and Chief Operating Officer of Highlander. “DZYNE, with its highly innovative programs and exquisite technology, is a unique and disruptive force in the emergent UAS industry. Highlander is well-equipped to support its many high-growth initiatives and capture a very significant market opportunity. DZYNE’s outstanding capabilities are a result of its greatest asset, its people, and we are thrilled to partner with the entire DZYNE team.”
Jeff L. Hull, President and CEO of Highlander, added, “At its core, DZYNE is a pioneering R&D and technology company. The DZYNE team’s work over the last decade to develop some of the leading UAS platforms in the market has been remarkable. Its groundbreaking technologies are frontrunning development in this ever-changing landscape. We have been incredibly impressed with what this world-class team has built, and we look forward to working together to take the business to new heights.”
Houlihan Lokey acted as financial advisor and SheppardMullin served as legal counsel to DZYNE. Highlander was represented by Baker McKenzie as legal counsel. Regions Bank provided financing for the transaction.
About DZYNE Technologies
DZYNE is a high-growth, leading technology developer and manufacturer of Group I-V UAS platforms. The Company’s platforms provide advanced intelligence, reconnaissance, and surveillance capabilities and the Company specializes in the rapid design, development, and deployment of advanced manned and unmanned systems. DZYNE integrates artificial intelligence into its operational aircraft with state-of-art payloads and end effects through concept creation, rapid prototypes, and finished products and can provide its aircraft with advanced full motion video and video processing, autonomous navigation, and targeting and tracking capabilities. For more information, visit www.dzynetech.com.
About Highlander Partners
Highlander Partners, L.P. is a Dallas-based private investment firm with approximately $3 billion of assets under management. The firm focuses on making investments in businesses in targeted industries in which the principals of the firm have significant operating and investing experience. Highlander Partners uses a buy and build investment approach, creating value by helping companies grow both organically and through acquisitions. For more information, visit www.highlander-partners.com. (Source: PR Newswire)
05 Jan 23. NorthStar Earth & Space Inc. closes US$35m Series C funding round lead by Cartesian Capital Group, LLC. NorthStar will use funding to launch the world’s most advanced Space Situational Awareness services by mid-2023
– NorthStar Earth & Space Inc. (“NorthStar”) continues to accelerate its space-based Space Situational Awareness (“SSA”) services with the closing of this US$35m Series C funding round with US-based private equity lead Cartesian Capital Group, LLC, (“Cartesian”) through an affiliated entity, Pangaea Three Acquisition Holdings III, LLC. The round also includes investment from Telesystem Space Inc., the Luxembourg Future Fund – Co-Investments SA, the Government of Quebec through its mandatary Investissement Quebec, and the Luxembourg Space Sector Development Fund SCSp, which is supported by leading global content connectivity solutions provider SES and the Luxembourg Government. This investment will accelerate NorthStar’s product launch and commercialization of its SSA services.
“NorthStar is privileged to have the support of Cartesian to lead an international consortium of experienced and industry savvy investors,” said Stewart Bain, CEO of NorthStar. “The prestigious array of participants reflects the immense importance of NorthStar’s mission to preserve the space environment now and for future generations.”
NorthStar is the first commercial enterprise to monitor all near-Earth orbits from space and combine data from a variety of ground-based sensors to provide more extensive coverage. The company’s high precision, next generation navigation and tracking services enable all satellite operators to manage their fleets more effectively, enhance spaceflight safety, avoid collisions, and promote space sustainability.
“Cartesian recognizes the transformational potential of NorthStar’s next generation services for the space economy,” said Beth Michelson, Partner at Cartesian. “NorthStar’s unique approach to providing complete coverage of space is critical to safeguarding essential space infrastructure.”
Both Beth Michelson and Paul Pizzani, partners at Cartesian, will be joining NorthStar’s Board of Directors.
About NorthStar
NorthStar is the first commercial service to monitor all near-Earth orbits from space.
Our unparalleled suite of high-speed information services accurately tracks and predicts the position of space objects to enable safety in spaceflight.
With a head office in Montréal, Canada, European headquarters in Luxembourg and subsidiary office in McLean, Virginia, NorthStar is solving the ever-growing threat of space collisions and, ultimately, empowering humanity to preserve our planet.
For more information on NorthStar, visit northstar-data.com
(Source: PR Newswire)
05 Jan 23. NMG Aerospace Expands Capabilities to New Market Segment with Matco Manufacturing Acquisition.NMG Aerospace is pleased to announce the acquisition of Matco Manufacturing, a Salt Lake City, Utah-based manufacturer of aircraft wheels, brakes, and related components. Matco Manufacturing specializes in experimental and light sport aircraft wheel and brake product design and component manufacturing.
“The acquisition of Matco reinforces NMG’s commitment to supporting all areas of the aerospace marketplace, particularly in the areas of wheels, brakes, and actuation,” said NMG’s Vice President of Business Development and Engineering Jeremy Earley. “It is exciting to take a core part of our offering at NMG and serve a new, growing market in experimental, light sport, and advanced air mobility sectors.”
NMG Aerospace is combining Matco’s capabilities into its trademark design, manufacturing, and testing expertise to make incremental advancements in its own product portfolio.
Matco Manufacturing was owned and operated by George Happ, a landing systems engineer with decades of experience, including tenures at Cleveland Pneumatic (now Collins Landing Systems) and Honeywell.
“George’s experience and passion for designing and manufacturing safe, high performance landing systems is what sparked NMG’s interest in Matco,” Earley said.
“NMG’s enthusiasm and knowledge for what we have built at Matco made it the perfect partnership to compliment our team,” Happ said. “Their understanding of the products we produce will bring a level of comfort and expertise to both existing and new customers.”
Happ will remain a key contributor to MATCO’s continued success by staying on as part of the leadership team both during and after the transition. The acquisition was finalized in Q4 of 2022. Matco’s existing customers can expect no disruption in product availability or performance.
About NMG Aerospace
NMG Aerospace is a 100 percent privately held, family-owned company offering world-class aerospace manufacturing and design services. Employing more than 350 individuals across locations in Ohio and Arizona, NMG has core competencies including aerospace parts manufacturing, CNC machining, design, assembly, inspection, and testing services. Learn more at https://www.nmgaerospace.com.
(Source: PR Newswire)
05 Jan 23. Dedrone Acquires Aerial Armor to Accelerate Airspace Security Leadership. Dedrone, the market leader in smart airspace security, today announced its acquisition of Aerial Armor, a leader in counterdrone systems and integrator of drone detection hardware. The acquisition will enable Dedrone to deliver the best-in-class technology platform to meet airspace security needs of the future as demand for counterdrone protections continues to increase in the US and around the world. As part of the acquisition, Dedrone will honor all Aerial Armor customer contracts and retain all employees, including CEO Russ Haugan and CTO Matt Altman. Customers of each company will continue with no changes to their solutions in the near term. Over time, Dedrone will leverage the best elements of both companies’ solutions, paving the way for customers to easily implement a multi-sensor fusion, cUAS (counter Uncrewed Aerial Systems) command and control (C2) platform into their security infrastructure.
“We have created a fantastic rapport with the team at Aerial Armor and are greatly impressed with their technology, expertise and the strong customer relationships they’ve built. As we come together under the Dedrone umbrella, we’re confident we will continue to find great synergies in our respective platforms and bring new innovations to market for our customers,” said Aaditya Devarakonda, CEO of Dedrone. “All of our customers around the world will reap the benefits of our more powerful C2 cUAS system, powered by inputs from a multitude of sensors including radio frequency (RF), radars and cameras in a single UI.”
Devarakonda continued, “I am thrilled to have Russ, Matt and the entire Aerial Armor team join Dedrone. We are constantly looking for the finest talent in the market and Aerial Armor provides one of the best groups of individuals with a deep understanding of the cUAS space. I have a lot of respect for the business they have built and am looking forward to building the best-of-breed solution for our customers.”
The move is the latest in a series of developments following Dedrone’s growth in recent months, including a rapid increase in global demand for detection, tracking, identification, and mitigation technology to protect airspace. Its platform and products, including DedronePortable, are in use by governments around the world.
“The ever-increasing threats to airspace make it clear that the world needs a strong counterdrone C2 platform — point solutions will no longer be enough. Dedrone offers a like-minded team in its approach to the future of airspace security, which is why this acquisition is an important one for our 100+ customers and team to continue to deliver the best possible solution for airspace security against the persistent and escalating threat of drones,” added Russ Haugan, CEO of Aerial Armor. “Together, our strengths will continue to provide best-in-class service to the venues, airports, federal entities and law enforcement agencies that rely on us for truly secure airspace no matter the perimeter size.”
Dedrone most recently introduced DedroneDefender, a handheld, low-collateral mitigation tool designed for law enforcement in even the most complex of urban environments. Dedrone works across 40 countries and customers include four of the G-7 nation governments; nine U.S. federal agencies; more than 75 critical infrastructure sites; 20+ airports; and 50 prisons worldwide. The company actively provides counterdrone solutions for some of the most high-profile events around the world and works closely with more than 35 law enforcement agencies.
About Dedrone
Dedrone is the market leader in smart airspace security. Hundreds of commercial, government and military sites around the world trust Dedrone’s comprehensive, counterdrone command and control solution to protect against the persistent and escalating threat from drones. By leveraging AI and machine learning, Dedrone is the only solution that provides continuous, autonomous interrogation and verification of drones. Whether on-premise / air-gapped or in the cloud, Dedrone customers can easily detect, track, identify, analyze and mitigate drone threats. Established in 2014, Dedrone is headquartered just outside of Washington, D.C., and has offices in San Francisco and San Diego, California, Columbus, Ohio, London, UK and Kassel, Germany. For more information on drone-related activity visit our global incident center or to reach our airspace security experts, visit dedrone.com and follow us on Twitter, Vimeo, and LinkedIn.
About Aerial Armor
Aerial Armor has been at the forefront of the drone defense industry since 2016 as a service provider and systems integrator for cUAS solutions. Our diverse team specializes in the use of cutting-edge technology to detect and manage drone-related threats. Using the latest drone detection systems, we provide you with customized solutions for your security needs. Our services combine cutting-edge technology, easy data access, and intuitive interfaces to easily incorporate drone detection into your security operations.
(Source: BUSINESS WIRE)
04 Jan 23. BMNT – Fostering Innovation in Space. New NASA contract marks BMNT Inc.’s third space-centric mission acceleration effort. With the award of a 3.5-year contract to grow NASA’s Early Stage Innovation Program (ESIP), BMNT – the company transforming public sector innovation – has built a growing space entrepreneurship practice to address the challenges of today and tomorrow.
Building on work with SpaceWERX and Aerospace Corporation, BMNT will work with NASA to accelerate NASA missions and grow the U.S. economy.
BMNT’s space practice – led by its H4XLabs business unit – is intended to leverage commercial innovation for government needs, particularly in the fast-moving startup ecosystems previously overlooked.
BMNT’s entrepreneurial engagement service already helps SpaceWERX, the innovation arm of the U.S. Space Force, connect to entrepreneurs focused on addressing space debris, a growing threat for military and civilian space missions. BMNT also helps Aerospace Corporation, the only federally funded research and development center for the space enterprise, work with the startup ecosystem to impact a wide range of government problems and accelerate the adoption of innovative solutions.
For NASA, BMNT will build and support a responsive community delivering relevant products and services by engaging aspiring and experienced inventors, entrepreneurs and investors, including those that don’t realize their Earth-focused research and inventions can contribute to space missions. The effort will engage innovative small businesses, especially companies that are new to NASA and those with women and minority founders and investors. BMNT will drive this community toward opportunities like SBIR Ignite, NASA’s annual solicitation for Small Business Innovation Research.
“This ESIP contract will enable NASA to leverage private investment in commercial space to solve mission-critical problems while aligning NASA efforts to strategic investments in Deep Tech,” says Ellen Chang, VP of BMNT and head of H4XLabs. “The cost of developing space systems is dropping sharply; spacecraft increasingly use sophisticated commercial off-the-shelf parts; and product life cycles are shorter. NASA no longer needs to build; it can buy. It is in our national interest to foster a vibrant and diverse space supply chain.”
About BMNT, Inc.: BMNT is an internationally recognized innovation consultancy and early-stage enterprise accelerator that is changing the future of public service innovation. www.bmnt.com (Source: PR Newswire)
04 Jan 23. George Industries Combines with Alexander Machine & Tool Company. George Holding, Inc. (“George Industries” or the “Company”), a leading designer and manufacturer of mission-critical and highly engineered components for the defense, aerospace and industrial sectors and a portfolio company of Behrman Capital, today announced a strategic combination with Alexander Machine & Tool Company, Inc. (“AM&T”), a leading provider of complex engineered solutions for mission-critical defense applications. Financial terms of the transaction were not disclosed.
Headquartered in Woburn, Massachusetts, AM&T specializes in manufacturing highly engineered solutions that are critical to the performance and functionality of advanced electronic systems (avionics, communication, land defense and space systems) that serve the defense, aerospace and space markets, among others. The company differentiates itself as a thermal management solutions provider with expertise across a variety of high-reliability manufacturing capabilities including high-precision machining, vacuum bonding, dip brazing and mechanical assembly. AM&T has longstanding relationships across its blue-chip customer base, serving as a strategic manufacturing partner on both new build and modernization efforts on programs of the highest priority for national security.
Jan Mathiesen, George Industries’ Chief Executive Officer, said: “Combining with AM&T significantly broadens the combined company’s thermal management solutions offering. Bringing together George Industries’ decades of manufacturing know-how in brazing capabilities with AM&T’s engineering, design and high-precision manufacturing will allow for significant cross-selling opportunities, as we look to build upon our strategic position and long-term growth prospects. We expect a very smooth integration that will enable us to stay focused on serving all of our stakeholders.”
Tammy Soper, President and Chief Executive Officer of AM&T, said: “We are proud of the reputation for quality that AM&T has built and provides for our customers through our advanced and diverse range of products and solutions which have been assembled over our 50+ year history. Joining forces with George Industries and Behrman Capital presents a compelling opportunity to realize our numerous growth prospects and continue our unwavering commitment to quality for our customer base.” Ms. Soper will continue in her management role leading AM&T post-transaction.
Grant Behrman, Managing Partner of Behrman Capital, said: “George Industries and AM&T are strategically complementary businesses that together create a differentiated solutions provider in the highly engineered thermal management solutions market. The combination provides enhanced product engineering, design and manufacturing capabilities and added scale across the shared platform’s core defense and aerospace end markets, which have been the key priorities of the platform since the outset of our investment in George Industries. We look forward to the opportunities ahead and the combined company’s exciting next chapter of growth.”
Behrman is investing additional equity in partnership with members of George Industries and AM&T senior management team as part of the transaction.
Houlihan Lokey acted as exclusive financial advisor to AM&T in connection with the transaction. Latham & Watkins LLP acted as legal counsel for George Industries.
About George Industries
George Industries is a recognized leader in the design, development, and manufacturing of mission critical engineered components for the defense, aerospace, transportation and industrial sectors. George Industries has strong capabilities and expertise in manufacturing thermal management products which are critical to the functionality of electronic systems. George Industries was founded in 1954 and is headquartered in Endicott, NY. For more information, please visit www.georgeindustries.com.
About Alexander Machine & Tool Company
AM&T is a leading provider of machining, fabrication and assembly solutions for thermal management applications in high-reliability end markets. Since its founding in 1969, AM&T has provided high-quality machined products and solutions by integrating advanced technologies, engineering and machining expertise. AM&T is dedicated to total customer satisfaction and strives to manufacture products in the most efficient and cost-effective ways. For more information, please visit www.alexandermachine.com.
About Behrman Capital
Based in New York City, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are focused in three industries: defense and aerospace, healthcare services, and specialty manufacturing and distribution. The firm has raised $4.0bn since inception and is currently investing out of its sixth fund. For more information, please visit www.behrmancap.com. (Source: PR Newswire)
05 Jan 23. Rheinmetall acquires 40% stake in digitalization specialist blackned GmbH. Rheinmetall is deepening its strategic ties with high-tech software maker blackned GmbH of Heimertingen, Germany. Expanding on an existing cooperation agreement, Rheinmetall Electronics GmbH of Bremen is taking up a 40 percent interest in the company. Under this arrangement, blackned GmbH will retain its independence while simultaneously powering its own growth. In acquiring a stake in this renowned software manufacturer, Rheinmetall is expanding its leading role as a partner for digitalization of the armed forces. This strategic partnership places Rheinmetall in an even stronger position to realize the continuity of the tactical information and communication network as well as the chains of effect within the system network.
Owner-managed, blackned GmbH is a German company specializing in mission-critical communications systems. The company has developed a next-generation connectivity solution called TacticalCore, which will now be integrated into Rheinmetall’s total architecture for networking existing systems. The TacticalCore is already an integral part of the “Digitalization of Land-Based Operations” (D-LBO) architecture as a “Tactical Platform Service”. The objective of this project is to digitize Germany’s ground forces and to secure a lead capability in the “Division 2025” project, a major Bundeswehr formation that should be fully equipped and ready for action by 2025.
The digitalization of armed forces is also advancing internationally. Rheinmetall is currently involved in projects in Australia, Great Britain, Hungary and other countries.
“We are very excited about the strategic merger with blackned,” says Christoph Müller, chief of Rheinmetall’s Electronic Solutions division. “With the new setup, together we can offer our military customers a technologically compelling solution for digitalizing land forces. Thanks to blackned’s TacticalCore, Rheinmetall’s leading-edge sensor portfolio can now be integrated into a digital networked ecosystem of vehicles, UAVs, soldier systems and unmanned platforms.”
“With Rheinmetall as a strategic investor, we’ll be able to systematically pursue our chosen growth path, advance our technological developments and thus provide our customers with the best possible technology”, declares blackned company founder and CEO Timo Haas. “At the same time, we can provide our partner Rheinmetall with a state-of-the-art middleware solution for its future system developments – a true win-win situation.”
04 Jan 23. Trading update: Harland & Wolff hit by deferrals.
- Supply chain and OEM order difficulties
- Termination of wind turbine contract
The decision by Harland & Wolff (HARL) to release a trading update on 30 December will be seen by some cynics as an attempt to bury the news. We couldn’t possibly comment, but the shares headed south despite the timing of the announcement.
The iconic maritime engineer has enjoyed a good run in the media since it was acquired out of bankruptcy in 2019, culminating in a strong run-up in its share price since the third week of November when it announced that it was part of a consortium that had been selected as the preferred bidder to build three Royal Navy support ships. It has been nearly 20 years since Harland & Wolff last launched a ship, although the £1.6bn Ministry of Defence (MoD) contract is still subject to final Treasury and ministerial approval.
It’s hardly a shock to learn that supply chain disruptions are at the heart of the group’s problems. In July, the Belfast-based group was awarded a $66mn (£55mn) project to regenerate the former Royal Navy mine-hunting vessel HMS Quorn on behalf of the Lithuanian Defence Materiel Agency.
Unfortunately, it has been temporarily unable to undertake “certain key workstreams” as it has struggled to secure an adequate supply of materials and specialist parts. Payments are contingent on progress, so management expects around £20mn of revenues from the contract will be deferred until the first half of this year. Management was at pains to point out that the overall project is “still on track and in line with the base redelivery schedule for the vessel”, but the issue shows how execution risks have increased across the manufacturing sector.
Harland & Wolff has also been under the pump due to inflationary effects and the deteriorating geopolitical situation. The confluence of events has forced some clients in the cruise and ferry market to either “defer their contracts into 2023 or reduce the scope of works”.
Management estimates that the problems will translate into a revenue loss of £8mn to £10mn for the fourth quarter. The deferred receipts should be received over the first half of this year once 2023 budgets for clients have been finalised.
A decision has also been taken with engineering contractor Saipem SPA (IT:SPM) to terminate a loss-making contract to provide four wind turbine jackets for the Neart na Gaoithe offshore project. The contract has been in place for less than two years but has been plagued by delays and defective materials, so a decision to cut and run seems prudent, despite the timing. In the post-Brexit era, the UK government is obviously keen to see a revival in local shipbuilding, but the update shows that Harland & Wolff is not immune to globalised problems in an interconnected marketplace. (Source: Investors Chronicle)
BATTLESPACE Comment: Is this another Scottish Ferry-type disaster waiting to happen? Why did this shortfall not come to light in the Due Diligence required to be caried out by DE&S prior to making H&W prime for the Support Ship contract? Or, will it transpire that no Due Diligence was carried out and H&W was used as the ‘Made In UK’ label as a sop to the GMB Union’s complaints about work going overseas? Time will tell and do we see a bailout on the horizon?
03 Jan 23. L3Harris completes $2bn purchase of Viasat Link 16 assets. L3Harris Technologies completed a $1.96bn purchase of Viasat’s tactical data link business, an acquisition expected to better position the 10th largest defense contractor to win orders tied to the Pentagon’s Joint All-Domain Command and Control initiative.
The companies announced the closing Jan. 3, some three months after the arrangement was first disclosed. L3Harris on Dec. 20 said regulators gave it the green light, accelerating a purchase that was initially thought to wrap later this year.
The buy consists of Link 16 Multifunctional Information Distribution System platforms, their associated terminals, which are installed in tens of thousands of U.S. and allied systems worldwide, and space assets. After taxes and other fees, Viasat will net some $1.8 bn for a business that generated $400m in sales annually. The money is slated to be used to pay down debt and buttress efforts already underway.
Brendan O’Connell, the president of the broadband communications division at L3Harris, told C4ISRNET the Link 16 assets are “a very natural fit” for the company, which he billed as a “leading defense and electronics provider, really for a global customer base.”
Link 16 is a secure, jam-resistant and high-speed line of communication used across domains and by international players, including NATO.
“We’re looking, as a trusted disrupter, to really enable our Department of Defense customers and international partner customers to modernize and really build a whole connected, interoperable force, to allow them to operate in contested environments,” O’Connell said Dec. 28.
Ensuring forces across land, air, sea, space and cyber get the information they need when they need it is among the Defense Department’s top priorities as it prepares for potential conflict with China and Russia, two world powers capable of intercepting, jumbling and terminating communications. The department’s push to seamlessly link disparate databases and make compatible old tech with new is known as Joint All-Domain Command and Control, or JADC2.
The endeavor includes specific contributions from the Army, Air Force and Navy: Project Convergence, the Advanced Battle Management System and Project Overmatch, respectively.
L3Harris in mid-September was named to the ABMS Digital Infrastructure Consortium alongside four other companies: Leidos, Northrop Grumman, Raytheon Technologies and Science Applications International Corporation. The collective is meant to accelerate development of ABMS, a next-generation of command and control.
The Link 16 portfolio will only increase the competitiveness of L3Harris, O’Connell said, and will extend its reach to nab contracts. JADC2-related opportunities are lucrative; L3Harris, Viasat and others were in 2020 selected by the Air Force for a $950m indefinite delivery, indefinite quantity arrangement.
“We’re really in a great position as a key JADC2 provider, especially when you add to that fact that we’ve done a lot of investments here in the last 10 years to develop resilient networking capabilities,” O’Connell said. “I think we inject a whole new set of ideas and capabilities to the current Link 16 portfolio we are acquiring.”
What’s next for Viasat?
Viasat plans to use the proceeds from the sale to accelerate and fortify ongoing projects. Link 16 accounted for one-third of its government business.
“The $2bn purchase price gives us a lot of flexibility to do things we’d like to do. It gives us a better cash flow. We can manage our debt more effectively. And, most importantly, it gives us a really strong reservoir to invest,” Craig Miller, the president of Viasat’s government systems branch, told C4ISRNET on Dec. 5. “There’s a lot of things we want to do in terms of really bringing our broadband network to global capability as quickly as possible.”
Viasat, the No. 73 largest defense contractor in the world ranked by revenue, according to Defense News analysis, has no plans to exit the defense ecosystem. Rather, the satellite giant is consolidating and refocusing and paying particular attention to its multibn-dollar takeover of Inmarsat, a British outfit that furnishes communications and data services worldwide.
Viasat officials believe the Link 16 portfolio — described in October as a JADC2 “accelerant” — will serve L3Harris well. The two have a long-standing relationship; Viasat CEO and Chairman Mark Dankberg in an October blog post described L3Harris as “our long-time data link partner.”
“We’re a very complementary company. There are places where we compete, but they’re kind of few and far between,” said Miller, who has worked at Viasat for nearly three decades. “This is a very good business. But we’re optimistic that they can probably even do more with it.” (Source: C4ISR & Networks)
03 Jan 23. Karl Kenny, Executive Chairman of Krakenrob Robotics Inc. (“Kraken”), announces that he has completed a series of dispositions of common shares in the capital of Kraken (the “Common Shares”). Between August 18, 2022 and December 9, 2022, Mr. Kenny disposed of an aggregate of 4,000,000 Common Shares as follows: (i) 3,000,000 Common Shares on August 18, 2022, pursuant to the terms of a private option dated August 14, 2017, granted to an officer of Kraken at an exercise price of $0.18 per Common Share; and (ii) an aggregate of 1,000,000 Common Shares through the facilities of the TSX Venture Exchange between December 7 and December 9, 2022, at an average price of $0.59 per Common Share for aggregate proceeds of $1,123,690 (the “Dispositions”).tec
Immediately prior to the Dispositions, Mr. Kenny held beneficial ownership of, or control or direction over, 24,060,049 Common Shares, representing 11.96% of the issued and outstanding Common Shares at the time, on a non-diluted basis. As a result of the Dispositions, Mr. Kenny now beneficially owns or controls an aggregate of 20,060,049 Common Shares, representing approximately 9.95% of the issued and outstanding Common Shares on a non-diluted basis and 10.3% on a partially-diluted basis (based on 201,524,235 Common Shares issued and outstanding). The resulting change in Mr. Kenny’s share ownership position was greater than 2% from Mr. Kenny’s last early warning report that was filed on August 9, 2022 in which Mr. Kenny reported the beneficial ownership of 11.96% of the then-issued and outstanding common shares on a non-diluted basis.
Mr. Kenny does not presently intend to make further divestitures or investments in Kraken, but may from time to time in the future increase or decrease his ownership, control or direction over securities of Kraken through market transactions, private agreements, or otherwise.
Mr. Kenny has filed an early warning report under Kraken’s profile on SEDAR (www.sedar.com) in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. (Source: PR Newswire)
02 Jan 23. SpaceX to raise $750m at $137bn valuation – CNBC. Elon Musk’s SpaceX is raising $750m in a new round of funding that values the rocket and satellite company at $137bn from investors, including Andreessen Horowitz, CNBC reported late Monday.
Reuters had reported in November that SpaceX was in talks about an offering of mostly secondary shares that could value the company at up to $150bn, representing a 20% increase in valuation.
SpaceX, which counts Alphabet Inc (GOOGL.O) and Fidelity Investments among its investors, had raised about $1.68bn through equity financing in June. Spokespersons for SpaceX and Horowitz did not immediately respond to Reuters’ requests for comment. Horowitz was also a co-investor in Musk’s Twitter buyout deal worth $44bn.
SpaceX has launched numerous cargo payloads and astronauts to the International Space Station for the National Aeronautics and Space Administration (NASA).
Starlink, SpaceX’s growing network of thousands of internet satellites, is looking at generating major revenue with commercialized applications such as the rollout of high-speed internet on commercial airlines.
SpaceX competes with Amazon.com (AMZN.O) founder Jeff Bezos’s space venture Blue Origin and bnaire Richard Branson’s Virgin Galactic (SPCE.N). (Source: Reuters)
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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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