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12 Jan 24. RTX threatens legal action against Italy over Microtecnica sale. The American defense giant RTX is threatening to take the Italian government to court for blocking the sale of an aerospace unit in Italy to the French firm Safran.
RTX, formerly known as Raytheon Technologies, had planned to sell Microtecnica to Safran. Microtecnica is an Italian company that makes components for the Eurofighter jet built by Italy, Germany, the U.K. and Spain.
Microtecnica is currently owned by RTX subsidiary Collins Aerospace, and is part of Collins’ flight controls business, which was to be sold to Safran in a $1.8 billion deal announced last July.
But in November, the Italian government blocked the planned sale of Microtecnica. Sources in Italy with knowledge of the decision said the current geopolitical environment makes it an unsuitable time for such deals, as they could jeopardize the Italian military’s access to crucial components.
To block the sale, Italy invoked its so-called Golden Power legislation, which allows the government to halt purchases of strategic local firms by overseas buyers.
At the time, Safran CEO Olivier Andries told the Financial Times he opposed the veto. “They assume the worst about our intentions that we will not fairly support or prioritise the Eurofighter,” the news outlet quoted him as saying.
Now, RTX and Safran are preparing to challenge the veto in court, said Jeff Shockey, the head of RTX’s global government relations.
“We and Safran will be filing appeals, which is necessary to preserve the global transaction,” he said in a statement. “We acknowledge the Italian government’s decision. However, we remain convinced the transaction would be good for Microtecnica, its customers, its employees, and all the other stakeholders involved.
“For this reason, we continue to be committed to the transaction and look forward to finding a solution to address any concerns that the Italian government may have.”
But if the involved parties can strike a deal to allay the government’s concerns outside a courtroom, RTX is prepared to do so, he said. “We look forward to the opportunity to resolve the matter through a constructive dialogue with the Italian Government outside of the appeal process.”
Italian union leaders, who learned of the planned appeal by Microtecnica management in Turin, Italy when they met Thursday, are backing the legal challenge.
“What were motives for this unexpected decision by the Italian government?” said Edi Lezzi, the Turin head of the FIOM union, which represents staff among the 600-plus Microtecnica employees in northern Italy.
“Who is taking care of this? The employees are stuck in the middle,” Lezzi added. “Microtecnica is healthy and profitable, and it is not professional if Defence Minister [Guido] Crosetto and Prime Minister [Giorgia Meloni] do not explain this choice, which could have a significant economic impact on the regions of Lombardy and Piedmont.”
Announcing its plan to purchase Collins Aerospace’s actuation and flight control activities last July, Safran said it would be acquiring eight facilities in France, the U.K. and Italy, as well as in Asia, employing about 3,700. These locations were expected to see sales of approximately $1.5 billion in 2024.
Introduced in 2012, Italy’s Golden Power rule is normally used to block Chinese takeovers of strategic firms. In 2021, Italian police raided an Italian drone maker which had allegedly been sold to China without alerting the Italian government, thus evading Golden Power sanctions.
RTX is the second largest company in the world based on defense-related revenue, according to Defense News’ Top 100 list. Safran ranked 28th on the list.
(Source: Defense News)
11 Jan 24. Allient Announces Acquisition of SNC Manufacturing.
Allient Inc. (formerly known as Allied Motion Technologies Inc.) (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today announced the acquisition of SNC Manufacturing Co., Inc. (“SNC”), a premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy, including electric utilities and renewable energy. SNC’s offerings are complementary to Allient’s current power quality capabilities while also providing needed incremental, low-cost manufacturing capacity. SNC will become a Technology Unit of Allient within the Allied Power Technology Pillar and will report to Ashish Bendre, Corporate VP and Group President.
Richard S. Warzala, Chairman, President and CEO of Allient, commented, “SNC is a solid addition to our Allied Power pillar. In addition to extending our capabilities in the clean power industry, SNC will provide us broader and deeper reach into industrial automation, defense, medical and in the energy and alternative energy markets. The business will also provide expanded opportunities to leverage sales channels and, additionally, we will gain much-needed manufacturing capacity and expertise to further grow our power quality business. And lastly, we are confident that through the utilization of Allient Systematic Tools we are in a good position to leverage our expertise to drive productivity and margin improvements over time.
“We are honored that John Vette III, selected Allient to carry the legacy of SNC forward after owning and leading the Company for 50+ years. John has built a strong leadership team and Jim Koepke the current President and COO of SNC will continue to lead SNC under Allient as the VP and General Manager of the Technology Unit. Jim will report directly to Ashish Bendre. We are confident that under the leadership of Ashish and Jim, the opportunities for Allied Power with this new addition will be greatly accelerated. We welcome the leadership team and the entire SNC workforce to the Allient family and we look forward to continued growth and success in the future.”
Founded in 1946, SNC is headquartered in Oshkosh, Wisconsin with approximately 440 employees in three locations. With approximately $40 m in revenue for the trailing twelve months, the business has other manufacturing facilities in Mexico and China. SNC’s leadership team will be staying with the business.
About Allient Inc.
Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.
Headquartered in Buffalo, N.Y., Allient employs more than 2,250 team members around the world.
To learn more, visit www.allient.com.
(Source: BUSINESS WIRE)
11 Jan 24. Framatome and Naval Group Complete the Acquisition of Jeumont Electric. Framatome and Naval Group announced the completion of the acquisition of Jeumont Electric from the group Altawest. Jeumont Electric is an industrial company specializing in the manufacture and maintenance of motors and electrical equipment for the nuclear energy and naval defense sectors. The acquisition enables Framatome and Naval Group to consolidate their activities in their respective sectors and aims to ensure Jeumont Electric remains a global reference in its field.
“Jeumont Electric is a strategic supplier to the nuclear industry and has recognized expertise in the manufacture and maintenance of motors and equipment for the energy and defense sectors. This acquisition secures our supply chain and is a response to sovereignty issues,” said Bernard Fontana, CEO of Framatome. “The existing Framatome site in Jeumont and the Jeumont Electric site share a common history. The close proximity of the two sites will allow industrial complementarities. I welcome the employees of Jeumont Electric to our team.”
Jeumont Electric offers a wide range of manufacturing, maintenance, and replacement services for electrical equipment, based on recognized expertise and proprietary technologies. It has a global presence, and serves a customer base of major global groups, such as shipyards, nuclear operators, and leading manufacturers.
“The implementation of our naval programs, and in particular propulsion equipment, requires highly qualified teams and unique know-how. It is with this objective in mind that we wish to perpetuate the exceptional skills of Jeumont Electric as a global reference in its field, serving notably the French defense industry,” said Pierre Éric Pommellet, Chairman and CEO of Naval Group.
Founded 125 years ago and with 620 employees, Jeumont Electric has four production sites in France and operates in more than 70 countries around the world.
Framatome is an international leader in nuclear energy recognized for its innovative, digital and value added solutions for the global nuclear fleet. With worldwide expertise and a proven track record for reliability and performance, the company designs, services and installs components, fuel, and instrumentation and control systems for nuclear power plants. Its more than 18,000 employees work every day to help Framatome’s customers supply ever cleaner, safer and more economical low-carbon energy. (Source: https://www.defense-aerospace.com/ Naval Group)
10 Jan 24. MD Helicopters Announces Record Orders for 2023. MD Helicopters, LLC (MDH) proudly announces record orders for the fiscal year 2023. The company experienced an increase in demand, resulting in the highest number of annual orders since 2008.
MD Helicopters credits this accomplishment to its renewed commitment to customer satisfaction, enhancing aftermarket services, and striving for excellence in both the military and commercial sectors. The company’s focus and unwavering dedication to providing top-tier products and services have resonated with customers worldwide and across various markets, resulting in the substantial growth observed in 2023.
Among the key contributing factors to this success are significantly improving customer support, increased investment in direct communications with customers, enhancing manufacturing efficiencies, ensuring in-stock spares availability, and maintaining healthy supplier relationships. This strategic approach has not only strengthened MDH’s market position but has solidified its reputation as a rotorcraft industry leader.
In addition to the Nigerian Federal Government (12 aircraft) announced earlier this year, recent commercial transactions involved MD 530Fs designated for multi-use missions. These additions include VIP aircraft sales, featuring an expansion to the Clemens Aviation fleet, procurement by the United States Department of Agriculture for agricultural missions, and fulfilling various utility needs, such as those of WCF Aerospace, representing Skydance Helicopters that specializes in power and utility services, amongst others. MDH is actively pursuing a well-rounded approach, emphasizing both military and commercial sales and showcasing the positive impacts of the company’s recent changes.
“This achievement is a testament to our dedicated team and the trust our customers have in us,” said Jason Lindauer, Vice President, Sales and Marketing of MD Helicopters. “We have an aggressive campaign underway to meet face-to-face with our customers, suppliers, and prospects to gather firsthand feedback and to continue to strengthen relationships. Our commitment to excellence remains steadfast, and we’re excited about the opportunities ahead.”
MD Helicopters, LLC (MDH) manufactures high-performance rotorcraft solutions that support operators flying military, commercial, law enforcement, utility, and VIP mission profiles. With thousands of aircraft in worldwide, MDH has been designing and building aircraft known for their safety, versatility, responsiveness, speed, and reliability since 1947. Our commitment to product sustainment and service customer success allows MDH to deliver aircraft unmatched in their performance and reliability. MD Helicopters, LLC is owned by an investment consortium comprised of MBIA Insurance, Bardin Hill Investment Partners LP, and MB Global Partners. (Source: https://www.defense-aerospace.com/ MD Helicopters)
10 Jan 24. Fujitsu could face “financial sanctions” to help fund compensation for victims of the Post Office scandal if the Japanese software company was found to be at fault, said the UK postal affairs minister. Kevin Hollinrake also said the government was “very, very close” to delivering a solution to exonerate postmasters caught up in the scandal, with expectations rising that Prime Minister Rishi Sunak would set out the plan at House of Commons questions at noon on Wednesday. Hollinrake told the BBC that it was a “realistic” scenario that Fujitsu would have to pay some of the bill for compensation if it was identified as “culpable for this scandal”. While he acknowledged that some issues still required resolution, Hollinrake said the government was eager to find a “mechanism to rapidly overturn” Post Office convictions secured with faulty data from Fujitsu’s Horizon IT system. Sunak was expected to update MPs on Wednesday, while ministers had not excluded the possibility he would announce extraordinary legislation to end the legal agony facing those caught up in the scandal. More than 700 people were criminally prosecuted by the Post Office between 2000 and 2014 using faulty data from the Horizon IT system provided by Fujitsu. Compensation of £600,000 had been offered to every sub-postmaster whose conviction for theft or false accounting was overturned. To date, 93 convictions have been overturned. Hollinrake said the government was “definitely not ruling out” emergency legislation to quash all convictions that took place as a result of the Horizon IT fault. However, he warned that tabling legislation to overturn convictions “en bloc” risked being seen as “interfering with the independent courts process”. Asked about the plausibility of the government potentially clawing back money from Fujitsu, Hollinrake said the public inquiry into the matter would conclude by the end of this year and was expected to report soon after. At that point in time, legal action or potential financial sanctions may be placed on them, which may well contribute to the bill currently with the taxpayer,” Hollinrake told BBC Radio 4’s Today programme. Government procurement records showed that even after Fujitsu’s software was found to be at fault in a December 2019 Court of Appeal ruling, the company was involved in £4.9bn of solo and joint public sector contracts. Fujitsu said this week it “apologised for its role in [the postmasters’] suffering” and was committed to supporting the inquiry, but declined to comment further “out of respect for the inquiry process”. (Source: FT.com)
09 Jan 24. Applied Insight Expands National Security Footprint With Acquisition of Zavda Technologies. Applied Insight LLC, a cloud and technology services leader in the government market backed by The Acacia Group, announced today the successful acquisition of Zavda Technologies LLC, a fast-growing, veteran-owned technology and data services company. The strategic move deepens Applied Insight’s footprint in the national security community and provides the Zavda team with wider opportunities for career advancement. It also strengthens Applied Insight’s network and systems engineering and security, data analysis, and software development capabilities to better support the dynamic needs of the intelligence community.
“We are excited to welcome the Zavda team to our Applied Insight family,” said Larry Denton, Chief Growth Officer of Applied Insight. “Many of us have worked closely with the Zavda team for over a decade on multiple key initiatives. The synergies between our organizations in technical expertise, customer knowledge, and employee-centric culture made joining forces a strong and easy fit and a natural evolution to our relationship. Our combined teams will be exponentially more powerful in serving our country’s most critical national security needs.”
Since 2006, Zavda has provided national security customers with advanced analytics, software development and systems engineering services supporting the intelligence mission. As a service-disabled veteran, economically disadvantaged and woman-owned company, Zavda’s mission is to design and deliver technology and data solutions that meet today’s demanding mission requirements and conduct research and development to stay ahead of the technological curve.
“We are thrilled to be joining forces with Applied Insight, creating an even more capable partner to our national security customers,” said Stacy Trammell, Founder and CEO of Zavda. “We’ve enjoyed a successful working relationship with members of the Applied Insight team over many years. Coming together makes total sense in terms of strengthening our support for the mission and creating new professional opportunities for the Zavda team. Together, we are a powerful blend of experience, talent and product innovation, positioning us to make a more substantial contribution to sustaining our national security.”
Applied Insight has mentored Zavda as a protégé since 2018. The teams also collaborated through a successful joint venture, Bravo Zulu Intelligence Solutions, to pursue and win new growth opportunities in the national security arena. Under this initiative, the joint venture provided next-generation analytics and data visualization, infrastructure development and modernization, and anomaly detection capabilities using technologies that included machine learning and Agile software development.
The company’s acquisition of Zavda is the latest step in Acacia’s strategy to build the most capable cloud-centric product and professional services business working at the heart of the U.S. intelligence mission. Through a combination of exemplary performance and precision acquisition, Applied Insight is now one of the largest mid-tier providers of cloud, data and engineering products and services supporting U.S. national security.
Monument Capital Partners acted as exclusive financial adviser to Zavda on this transaction and Pillsbury Winthrop Shaw Pittman provided its legal counsel.
Learn more about Applied Insight at www.applied-insight.com.
About Applied Insight
Applied Insight is a trusted go-to partner of government and industry for innovation in cloud, networking, data and cyber operations, renowned for its deep customer knowledge and rapid problem solving through a unique blend of human experience and technical expertise. Applied Insight’s products and expertise have been honed and proven at the epicenter of the defense and intelligence mission. They apply that experience to design, deliver and manage highly secure cloud, networking, data, and cyber services and solutions across the public sector. Applied Insight has the scale to tackle the most complex challenges for our customers and the agility to solve them at the speed they demand. Learn more at applied-insight.com. Follow us on Instagram, LinkedIn and Twitter.
About The Acacia Group
The Acacia Group is a specialist investment firm building stronger businesses by harnessing the power of digital transformation. We work closely with management teams as engaged and supportive partners, fostering resilient cultures of collaboration and innovation to make our portfolio companies more valuable to their clients, employees and co-investors. By empowering skillful leaders, nurturing exceptional talent, investing in innovation and building distinctive brands, we create the qualities businesses need to achieve lasting success. For more information, visit The Acacia Group or follow us on LinkedIn. (Source: BUSINESS WIRE)
09 Jan 24. Elettronica Spa acquires Solynx Corporation. Elettronica Spa announced that it has completed the acquisition of Solynx Corporation, a company based in Salem, New Hampshire (USA) in which it was already a shareholder. Solynx is a high tech procurement and technological scouting company which will increase opportunities for ELT Group to identify new technology trends and turn them into an enrichment of its offerings to the market. In 2023 Solynx has increased its order intake from €5m to €12m, a growth also confirmed in the next budget.
“We are very pleased to have completed the acquisition of Solynx Corporation. This acquisition is part of the internationalization process of ELT Group, which now also has a stronger presence in the U.S. market” said Domitilla Benigni, Chief Executive Officer of Elettronica.
09 Jan 24. Lynx Software Technologies Announces Acquisition of Thompson Software Solutions. Lynx Software Technologies (Lynx), a leader in the development of foundational, open architecture software solutions for the Mission Critical Edge, today announced the acquisition of Thompson Software Solutions, LLC. (TSS), a provider of software development, engineering, and integration solutions to mission-critical aerospace and defense (A&D) platforms, spanning military and commercial fixed- and rotary-wing aircraft, commercial space flight, hypersonic platforms, and command-and-control systems. Its customers include the U.S. Department of Defense (DoD), prime integrators, A&D original equipment manufacturers, and commercial space companies.
Since its founding in 2004, TSS has delivered technical capabilities and strategic insights to enable innovative software products requiring the highest reliability, security, and performance standards. With expertise spanning high-integrity software architecture and development, DevSecOps, cybersecurity, airworthiness certifications, open systems architecture, simulation and training, and AI and machine learning, customers across the A&D end-markets rely upon TSS to provide strategic guidance, differentiated technical capabilities, and a deep understanding of mission requirements. TSS’s Chief Executive Officer, Les Thompson, and Chief Strategy Officer, Patrick McClellen, have taken on senior roles within Lynx following the close of the transaction.
The combination of Lynx and TSS creates a scaled provider of mission-critical software solutions for customers with complex interoperability, safety, and security challenges. Lynx’s foundational software products, open-source expertise, productivity- and security-enhancing development tools, highly technical software engineering services, delivered via both professional and managed services business models, and its highly skilled and security-cleared employee base combine to create a platform company uniquely positioned to support the full software development lifecycle for clients in aerospace, defense, and other heavily regulated end-markets.
“The TSS team has built the company on a solid foundation of trusted customer relationships, innovative and cutting-edge technical capabilities, and flawless execution. With TSS’s high-value and differentiated software development and integration capabilities, we will be better equipped to enable aerospace and defense OEMs and prime integrators to accelerate the design, development, and deployment of their products and platforms,” commented Tim Reed, Chief Executive Officer of Lynx. “As we end 2023, Lynx’s portfolio of solutions spans from the operating system to the application layer, certifiable real-time, to general purpose and open-source, and from commercial-off-the-shelf (“COTS”) to government-off-the-shelf (“GOTS”) software products. I’m thrilled to work with Les and the TSS team as we continue delivering comprehensive and unique software-enabled solutions to customers whose needs extend from the development pipeline to the Mission Critical Edge.”
“Throughout my twenty years leading TSS, we’ve been consistently committed to delivering robust software solutions that meet the stringent requirements of our customers while ensuring they can stay on schedule and budget,” commented Les Thompson, Chief Executive Officer of TSS. “From our first discussions with Tim and the Lynx team, it became clear that Lynx is not just a vendor looking to push products but a committed, mission-oriented partner with the same objectives we have here at TSS, which includes continuing to deliver on our shared goal of providing resilient, secure, and performant software solutions targeted at the most demanding mission-critical environments.”
“The combination of Lynx and TSS creates a software solutions platform placed at the center of priority aerospace and defense investment areas, notably open standards, modularity, and security. Like TSS, Lynx has an established track record of exceeding customer expectations with its innovation, performance, and value proposition. As a combined company, Lynx and TSS are well-positioned to grow as our clients continue to execute on the software modernization, integration, and development priorities,” commented Patrick McClellen, Chief Strategy Officer of TSS.
About Lynx Software Technologies
Lynx Software Technologies is on a mission to improve the economics of developing, deploying, and maintaining high-assurance Mission Critical Edge platforms with modular software solutions based on open standards. Our proven technology leadership, extensive system certification expertise, and commitment to open standards have consistently saved our customers ms of dollars in development costs while delivering desired system performance, security, and reliability on schedule. Lynx is committed to enabling customers to build and manage orchestrated, cloud-connected platforms that harness a broad array of modern technologies and unique design methodologies to enable accurate, deterministic decisions at the Mission Critical Edge without compromising safety or cybersecurity requirements. For more information, visit www.lynx.com.
About Thompson Software Solutions
Founded in 2004 with locations in Atlanta, GA and Fort Worth, TX, the Thompson Software Solutions team understands what is required to develop, integrate, test, and deploy software with a safety-critical pedigree while meeting the challenges of modernization and digital transformation. Our team of proven and dedicated employees takes pride in our ability to react quickly and produce quality solutions to difficult technical challenges. We work with partners to find the right path to meet operational needs while future-proofing systems with portability and sustainment considerations to ensure next-generation success. For more information, visit https://www.thompsonsoftwaresolutions.com.
About OceanSound Partners
OceanSound Partners is a New York-based private equity firm that pursues control investments in technology and technology-enabled services companies serving government and enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. For more information, visit www.oceansoundpartners.com. (Source: BUSINESS WIRE)
09 Jan 24. Astronics Corporation Announces Preliminary Unaudited Revenue for Fourth Quarter 2023 and Initiates Revenue Guidance for 2024.
- Preliminary, unaudited fourth quarter revenue was $193m to $195m
- Full year 2023 preliminary unaudited revenue was approximately $688m, an increase of 29% over 2022
- Initial 2024 revenue guidance established at $760m to $795m
Astronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense and other mission critical industries, announced its fourth quarter 2023 preliminary unaudited revenue was $193m to $195m. At the mid-point of the range, preliminary revenue was up 23% over the prior-year period and up 19% over the trailing third quarter. Full year preliminary unaudited revenue for 2023 was approximately $688m. Preliminary bookings in the quarter were $185m bringing orders for the full year to approximately $726m.
The Company also provided preliminary revenue expectations for 2024 of $760m to $795m representing an increase of approximately 13% over 2023 at the mid-point of the range.
Peter J. Gundermann, Chairman, President and CEO, commented, “We ended the year on a strong note with the second consecutive year of over 20% growth. Our supply chain continues to improve, our workforce is getting better and we are regaining our operating rhythm. We expect 2024 will be another year of solid growth driven by our opening backlog of approximately $595 m. We look forward to getting back to pre-pandemic sales levels and growing beyond as we continue to innovate with new products and solutions.” (Source: BUSINESS WIRE)
08 Jan 24. Fairbanks Morse Defense Acquires Samtan Engineering Corporation. Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, has acquired single-source metalworking supplier Samtan Engineering Corporation based in Malden, Massachusetts. Samtan’s metalworking services expand FMD’s portfolio with shearing, punching, forming, machining, fabrication and assembly capabilities.
“Our acquisition of Samtan Engineering Corporation allows Fairbanks Morse Defense to continue delivering value far beyond the cost of our services through the seamless integration of metal-stamped products and machine shop services,” said FMD CEO George Whittier. “Samtan has a long track record of delivering superior customer service and high-quality products to the U.S. Navy, especially for submarine programs. Their team will be a valuable addition to the Fairbanks Morse Defense brand.”
Since 1962, Samtan Engineering Corporation has evolved into a leading single-source metalworking supplier with services such as shearing, punching, forming, machining, welding, and assembly capabilities. Samtan’s components, which can be produced as a single piece or hundreds of thousands of pieces, include metal stamping and deep drawings, marine banded cable hangers, marine tapped cable hangers, marine main wireway hangers, and marine pipe clamps and hangers.
“As part of the Fairbanks Morse Defense brand, Samtan can accelerate the installation of metalworking products into new U.S. Navy ship classes and other vessels,” said Dana Miele, Samtan GM. Samtan’s customers will also have access to the comprehensive range of fully integrated maritime defense solutions offered by Fairbanks Morse Defense, as well as a global network of highly trained technicians, which will increase operational availability. We’re looking forward to bringing these expanded capabilities to our customers as part of the FMD team.”
The acquisition represents a further expansion of FMD’s portfolio of turnkey marine solutions after the recent additions of manufacturing and service providers, including American Fan, Maxim Watermakers, Federal Equipment Company (FEC), Hunt Valve Company, Ward Leonard, and Welin Lambie. These increased capabilities support FMD’s ongoing mission to build, maintain, and service the most trusted naval power and propulsion systems on the planet.
About Fairbanks Morse Defense (FMD)
Fairbanks Morse Defense (FMD) builds, maintains, and services the most trusted naval power and propulsion systems on the planet. For more than 100 years, FMD has been a principal supplier of a growing array of leading marine technologies, OEM parts, and turnkey services to the U.S. Navy, U.S. Coast Guard, Military Sealift Command, and Canadian Coast Guard. FMD stands ready to rapidly support the systems that power military fleets without compromising safety or quality. In times of peace and war, the experienced engineers, sailors, and technicians of FMD demonstrate our commitment to supporting the mission and vision of critical global naval operations wherever and whenever needed. FMD is a portfolio company of Arcline Investment Management.
About Samtan Engineering Corporation
Established in 1962, Samtan Engineering is recognized as one of the leaders in metal stamping and the production of engineered components for marine electrical hardware, including cable hangers, wireway hangers, and clamps. Samtan is a supplier to the U.S. Navy submarines, surface combatants, and auxiliary ships, as well as U.S Coast Guard vessels, along with some aerospace and commercial customers. (Source: BUSINESS WIRE)
08 Jan 24. Godspeed Capital-Backed Crimson Phoenix Acquires Cyberspace Solutions. Godspeed Capital Management LP (“Godspeed”), a lower middle market Defense & Government services, solutions, and technology focused private equity firm, today announced the acquisition of Cyberspace Solutions LLC (“CSS”) by its Intelligence, AI/ML, and Data Analytics platform Crimson Phoenix. The acquisition brings Crimson Phoenix additional Prime Contracts and coveted relationships with US Special Operations Command and the Defense Intelligence Agency. In connection with the transaction, industry finance veteran Scott Crane will join Crimson Phoenix as Chief Financial Officer.
Crimson Phoenix CEO Ross O’Rourke remarked, “Cyberspace Solutions brings to Crimson Phoenix long-standing customer relationships and Prime contracts with US Special Operations Command and the Defense Intelligence Agency. CSS’ dedicated, experienced, and highly trained and cleared employees will bolster our data-driven intelligence strategy, as they support our country’s national security objectives. We are also thrilled to welcome one of our industry’s most seasoned finance executives, Scott Crane, to Crimson Phoenix as platform CFO. Scott’s previous experience serving as CFO of a private equity-backed platform in the Intelligence and National Security community will further enhance our ability to grow and scale Crimson Phoenix into a leading, multi-faceted intelligence solutions provider for key U.S. agencies and defense partners.”
Scott Crane said, “Partnering with Crimson Phoenix marks a new and exciting chapter for Cyberspace Solutions and our dedicated employees. Becoming an integral part of a broader, more diversified Intelligence platform will provide us with additional resources and new opportunities for growth and expansion. As CFO of Crimson Phoenix, I hope to be able to lend my experience with PE-backed strategies in the Defense and Intelligence community to enhance our financial capabilities across the platform.”
Godspeed Capital was advised by Latham & Watkins LLP. CSS was advised by Chertoff Capital.
About Crimson Phoenix
Crimson Phoenix is a leading digital, data and intelligence analysis and solutions platform designed to support the critical mission requirements of the U.S. Intelligence Community and Special Operations Command. Headquartered in the DC/Virginia area, Crimson Phoenix offers a differentiated suite of mission-critical capabilities and solutions in Artificial Intelligence & Machine Learning, cybersecurity, digital and data enablement, software development, and intelligence targeting and analysis. For more information, please visit www.CrimsonPhoenix.com
About Godspeed Capital Partners
Godspeed Capital is a lower middle-market Defense & Government services, solutions, and technology focused private equity firm investing alongside forward-thinking management teams that seek an experienced and innovative investment partner with unique sector expertise, operational insight, and flexible capital for growth. While a typical investment will involve companies generating approximately $3 m to $30 m of EBITDA, Godspeed Capital has significant support to complete larger transactions through strategic co-invest relationships. The firm focuses on control buyouts, buy-and-builds, corporate carve-outs, and special situations. For more information, please visit the Godspeed Capital website at www.godspeedcm.com. (Source: BUSINESS WIRE)
08 Jan 24. 5WPR Announces Dedicated Defense Vertical. 5WPR, one of the largest independently owned PR firms in the U.S., announced today the continued expansion of its B2B Technology, Corporate Communications and Government Affairs divisions with a dedicated defense PR and aerospace PR vertical, to offer a wider range of services at the intersection of these industries.
5WPR has received increased interest from defense and aerospace companies seeking communications support in response to ongoing advancements within the industry, including increased attention to the space on a global scale as well as introductions and approvals of bills impacting the industry nationally. The agency also has extensive experience working in Israel, Ukraine and other regions facing conflict.
The new vertical is led by a team of experts who possess a long history of leading successful campaigns for defense and aerospace clients including Shield AI who 5W has assisted to expand their footprint and enhance their brand reputation, connecting them with a broad array of audiences, from investors and customers to governments and strategic partners.
PR services offered to defense clients include messaging and positioning, media relations, initial public offering media strategy, new market expansion campaigns, visibility programs, content creation, sponsorships/partnerships, digital media campaigns, event planning, thought leadership and speaking opportunities.
“We’re entering a new generation of defense and defense tech with very different needs and goals than before. We have extensive experience working in these industries and understand how to navigate both the historical context of the industry while bringing a tech-focused approach as AI and robotics continue to heavily influence the space,” said Ronn Torossian, Chairman of 5WPR. “5W has a deep understanding of technology communications. Our expertise gives clients an incredible competitive advantage as we can provide them with strategic counsel across both the public and private sectors.”
About 5WPR
5WPR is a full-service PR agency in NYC known for cutting-edge programs that engage with businesses, issues, and ideas. Founded by Ronn Torossian 20 years ago, 5W has been named a top US and NYC PR Agency by leading industry publication O’Dwyer’s, as well as awarded Agency of the Year in the 2023 American Business Awards®, and continuously brings leading businesses a resourceful, bold, and results-driven approach to communication. The agency has more than 300 professionals serving clients in B2C (Beauty & Fashion, Consumer Brands, Entertainment, Food & Beverage, Health & Wellness, Travel & Hospitality, Technology, Nonprofit), B2B (Corporate Communications and Reputation Management), Public Affairs, Crisis Communications and Digital Marketing (Social Media, Influencer, Paid Media, SEO). In addition to its business accolades, 5W was named to Inc Magazine’s Best Workplaces 2022 list. For more information and to join our team visit 5W Careers.
(Source: PR Newswire)
08 Jan 24. Excelitas Technologies® Corp., a leading industrial and medical technology manufacturer focused on delivering innovative, market-driven photonic solutions, announces today that it has completed the successful acquisition of the Noblelight business from Heraeus Group (Hanau, Germany), including operations in Germany, United Kingdom, United States, China and Japan, along with several key application centers and sales offices around the world.
Noblelight specializes in the development and manufacture of specialty lighting components and system solutions, from ultraviolet to infrared, used within analytical instrumentation, industrial curing, water treatment, electronics manufacturing, medical and cosmetic therapy, battery production and many others.
“We are very pleased that Noblelight and its strong team are now part of Excelitas. The combined knowledge and manufacturing expertise of Excelitas and Noblelight now present one of the broadest and most extensive light technology offerings available from a single source. We share a field-proven go-to-market strategy based upon deep customer engagement, which enables market success and ensures long-standing business relationships,” said Ron Keating, Excelitas Technologies CEO.
The acquisition of Noblelight represents the latest in a series of strategic acquisitions by Excelitas Technologies since its establishment in 2010.
“We are greatly enthused with the possibilities of our new partnership. We see significant opportunities in leveraging our combined capabilities to best serve our customer base and continue an accelerated path for profitable growth,” said Roland Eckl, Managing Director of Noblelight.
The acquisition officially closed on January 1, 2024. Terms of the transaction are not being disclosed.
01 Jan 24. AST SpaceMobile provides interim update regarding fundraising. AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS) has provided an interim update on the company’s fundraising progress.
Strategic investment process continues with multiple parties
- Now seeking to close and fund the previously disclosed strategic investment in January 2024 with multiple parties, subject to completion of final documentation and approvals
- Secured initial ground infrastructure orders from two customers for planned commercial service
- There can be no assurance that we will enter into any such transactions on acceptable terms, on this timing, or at all
AST SpaceMobile, Inc. is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio. The company’s engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five bn mobile subscribers and finally bring broadband to the billions who remain unconnected.
(Source: Satnews)
05 Jan 24. 2023 a year of ‘good’ mixed with ‘bad’ and some ‘ugly’ for the SA defence industry. 2023 showed that the SA defence industry (SADI) is mainly on its own when looking for solutions and market opportunities.
2023 kicked off with a bang and the rolling story of the Lady R docking in Simons Town. Allegations were made that a SADI role-player could have been exporting weapons to Russia. This proved to be incorrect, but the damage was done. The story grew a tentacle with the landing of an Il-76 at Air Force Base Waterkloof. These should not have been issues, but the switching off of transponders really was an ugly occurrence that tainted the country’s name. These own goals really don’t assist SADI when looking to promote South Africa as a source of solutions.
As a good element countering this issue, Reutech has developed a passive radar solution for detecting ‘dark’ vessels. The Reutech defence and electronics unit had a strong year, with the business unit offering significant value for shareholders. A new strategy under Trevor Raman is taking shape nicely.
The SADI electronics segment remains strong, as borne out by healthy export figures. The DoD is looking at acquiring new radar systems, low-cost target drones and electronic warfare systems. SAAB Grintek Defence (SGD) are consolidating their integrated electronic warfare self-defence solutions with new top management, progressing naval and airborne solutions, including IDAS 310 development. Hensoldt SA remains a shining light within the SADI. The ASTUS UAV, Quadome (Radar Division), Skylark-N (EW Division) and Striker II Helmet (Optronics Division) show the benefit Hensoldt offers. Reutech, SGD and Hensoldt SA show the potential of the larger electronics entities. 2023 also saw newcomers in the sensor arena. One such newcomer is ‘To-the-Point-International’ with a range of turret sights and integrated remote weapon solutions.
It seems to have been a good year for Rheinmetall Denel Munition (RDM). Multiple 40 mm and 155 mm ammunition contracts were secured during the year. This is good for the SADI as there is generally a ripple effect in securing contracts with new developments. The end of 2023 saw RDM demonstrating refurbished ammunition as well as announcing the development of a ramjet-powered 155 mm artillery round.
The SADI armoured vehicle segment was active in 2023. DCD Protected Mobility celebrated its 125th anniversary with the launch a new vehicle (Springbuck Weapons Carrier) to compliment its already impressive lineup. The Defence Demo Day provided the opportunity for potential local APC suppliers to demonstrate their vehicles (OTT Solutions’ Puma, Milkor 4×4, Twiga Nyathi, ICP Reva X and the DCD Protected Mobility Springbuck) with a view to a response to the Armscor APC RFI issued in January 2023.
SVI secured a first order for the six-wheeled Max 3. Paramount made headway in the armoured vehicle segment with news of multiple Mbombe 6 customers and entry into India in partnership with Bharat Forge manufacturing the Kalyani M4 (Mbombe 4 variant). The OTT Solutions Ratel Service Life Extension Programme (SLEP) fire power enhancement was demonstrated to the South African National Defence Force (SANDF). The Ratel SLEP maximises the use of local solutions for a system upgrade that is suitable for enhancing a total fighting vehicle capability. The armoured vehicle segment is showing resilience in a tough market. The new timelines for Project Hoefyster were released. 2024 looks to be an exciting year for Denel Land System. The Badger solution still seems to be touted as a ‘silver bullet’ for Denel’s ailments.
The SADI’s challenge remains government support. Really good news was the Minister of Defence pledging support for the SADI. This was followed by a strong budget speech. The Minister has committed to finalising Revised Level of Defence Ambition by March 2024.
In May 2023, it seemed that there would eventually be a Defence Industry Lekgotla. Bad news! The Defence Industry Lekgotla did not happen in 2023. This is a missed opportunity. AMD did facilitate discussions on the potential for Public Private Partnership (PPP) initiatives in the defence sector.
The PCDMV & JSCD conducted a joint study tour to Germany in June 2023. The study tour looked at the benefits the defence industry could offer the nation. Positive observations were made around the defence industry. The Ugly element remains the study tour recommendation affecting SADI that needs most urgent implementation is the urgent finalisation and implementation of the Directorate Conventional Arms Control (DCAC) electronic permit application system. Why is this still not complete? Future study tours really need to take in Turkey and South Korea as guiding countries for the defence industry.
With the 2024 elections on the horizon, Minister Modise may not have a chance to assist in guiding the SADI future until after June 2024 at the earliest. General SADI government support then remains in limbo.
Government has offered support for Denel’s revival through the implementation of the Denel turnaround strategy. The Top SANDF echelon is up to speed on Denel “mysteries” and CSANDF expressed support for Denel. This is positive. Finally, Denel received a permanent CEO appointment. According to the Minister of Finance, Denel still remains financially distressed, but a full time CEO that has the relevant experience can have a positive impact.
Unfortunately, the defence capability experienced ugly incidents towards the end of the year. In September, three SA Navy submariners died during an accident at sea, four SA Army soldiers died in a fatal road crash on route to Exercise Vuk’uhlome, and then there was the runaway veld fire that claimed the lives of six soldiers. The Board of Inquiry results are still awaited, but budget constraints could be seen as a contributing factor. The Portfolio Committee on Defence and Military Veterans and the Joint Standing Committee on Defence have also mentioned that budget increase is desirable, but it needs to be based on the Revised Level of Defence Ambition that these committees still have not seen.
From a local defence force perspective, some of the best news for the SADI was the staffing of the Defence Materiel Division positions Director Army Acquisition, Director Air Force Acquisition and Director Navy Acquisition from 1 December 2023. These are the people that can drive the renewal element of the SANDF Journey to Greatness, hopefully using SADI capabilities.
From the above, it seems that the SADI can be proud of 2023. The question remains what is the overarching goal for South Africa’s defence capability.
Written by James Kerr, Orion Consulting CC, which provides Market Entry Strategy and Bid & Proposal services to the Aerospace & Defence related industry and assists international SME mission system product suppliers to gain traction in South Africa. (Source: https://www.defenceweb.co.za/)
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