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11 Apr 24. Space startups see funding surge as government spending remains high, report says. Funding for space startups more than doubled in the first quarter as government spending remained robust setting the stage for the space economy to grow stronger, venture capital firm Space Capital said on Thursday. Geopolitical uncertainties have largely driven the surge in funding, as geospatial data and images collected by satellites are used by government agencies for everything from analyzing weather patterns and agriculture to changes and movements along international borders.
“While we still have some consolidation to get through, the overall space economy is rebounding and it is now replete with a number of rising stars,” said Chad Anderson, the venture capital firm’s managing partner.
Funding for space startups rose to $6.5bn in the first quarter ended March 31, from $2.9bn a year earlier, and inflows were up 33% from the fourth quarter, as investment in geospatial intelligence overtook satellite communications for the first time, showing the growing demand for such data.
Meanwhile, pricing for satellite capacity has also fallen helping attract companies to use assets in space for commercial purposes.
The first quarter saw many milestones including SpaceX’s successful Starship flight test to United Launch Alliance’s launch of Astrobotic and Intuitive Machines’ (LUNR.O), opens new tab mission, which was the first touchdown on the lunar surface by a U.S. spacecraft in more than half a century.
The space economy’s size is set to triple to $1.8trn by 2035 and roughly rival the size and reach of the global semiconductor industry, according to a World Economic Forum report released earlier this week.
This underscores the potential impact on investors, businesses, and government entities, who stand to gain significantly from the growth of the space sector. (Source: Reuters)
11 Apr 24. Firan Technology Group Corporation (“FTG”) Announces First Quarter 2024 Financial Results. Firan Technology Group Corporation (TSX: FTG) today announced financial results from its first quarter of 2024.
- First quarter bookings of $37.5m were up 14% over Q1 2023.
- FTG first quarter revenues of $35.0m were up 42% over Q1 2023.
- FTG achieved Adjusted Net Earnings in Q1 2024 of $1.1m.
- FTG achieved Adjusted EBITDA of $4.6m, which was up 42% over Q1 2023.
Business Highlights
During Q1 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished the following in Q1 2024, which continues to improve the Corporation and position it for the future:
- Integration activities at both acquisitions progressed well through 2023 and Q1 2024 with improved throughput, improved pricing, cost savings and FTG ERP implementation completed at Circuits Minnetonka, and cost savings, equipment investments and growth plans at Circuits Haverhill. More activities and full FTG ERP implementation for Circuits Haverhill are planned for the balance of 2024.
- Also, in support of the new acquisitions, and the overall growth of FTG, Leo LaCroix was hired as Executive Vice President, Circuits to oversee FTG’s US Circuits operations including the newly acquired sites. Leo has extensive senior management experience in the circuit board industry selling into the defence market.
- FTG managed through a six-week strike by 67 unionized employees at the FTG Aerospace Toronto facility, which resulted in decreased product shipments during Q1 2024 of approximately $3.0m. The reduction in revenue had a negative impact on Net Earnings of approximately $1m. A new 4-year agreement with the employees was concluded and the employees returned to work on January 23, 2024. The new contract expires in August 2027.
- Customer orders received in Q1 2024 totaled $37.5m, resulting in a book-to-bill ratio of 1.07:1.
- As of March 1, 2024, FTG had a total backlog of $99.3m, which is a 34% increase over the Q1 2023 backlog of $74.2m. The two acquisitions added approximately $17.0m of additional backlog as of their closing date.
(Source: Google/GLOBE NEWSWIRE)
11 Apr 24. Williams launches new company to solve clients’ engineering challenges with F1-derived innovation and pedigree. Williams announced the launch of a new company that will apply the cutting-edge innovation and technologies of F1 to tackling clients’ engineering challenges in other sectors. Drawing on lessons learned over almost 50 years at the pinnacle of motorsport, Williams Grand Prix Technologies will bring a laser focus to solving clients’ problems using world-leading engineering capabilities. Sitting alongside Williams Racing, and also owned by Dorilton Capital, the new company will be based at the team’s technology campus in Grove, UK. Racing in Formula 1 involves a lightning-fast development cycle, taking a car from concept to competition in less than 12 months. Williams Racing is one of the most successful teams in F1 history, with nine Constructors’ Championships, seven Drivers’ Championships and 114 race wins. Williams Grand Prix Technologies will offer this innovation-led approach and extraordinary pedigree to a wide range of new sectors including wider motorsport, premium automotive, aerospace, defence, marine, energy, sport and lifestyle.
Clients will be able to draw on the resources, assets, skillsets, technologies and talent available to the racing team to unlock new performance and potential in their businesses. Williams Grand Prix Technologies will also work closely with Williams Racing’s technology suppliers and partners to bring advanced solutions in simulation intelligence and data engineering to clients.
A mix of highly-skilled people and unique engineering assets will combine to offer services including: platform dynamics; advanced materials; simulation and modelling; instrument and data analytics and high performance computing. Sitting alongside these core engineering services is a range of in-house prototype testing and evaluation resources that include: wind tunnel; driver-in-the-loop simulator; single-axis testing machines; 8-post rig; chassis rig; other testing rigs and bedplate testing. Whilst originally developed for the purposes of the race team, these capabilities and assets have far wider applicability which the new company will harness.
Prior to the establishment of Williams Grand Prix Technologies in 2024, Williams also had other business interests beyond F1 racing. Williams owned a majority stake in Williams Hybrid Power Limited and also established Williams Advanced Engineering – both businesses took technology developed for F1 and adapted it for multiple commercial applications. Williams Hybrid Power was sold to GKN in March 2014 and Williams Advanced Engineering was sold to Fortescue in February 2022.
Matthew Savage, Chairman at Williams Grand Prix Engineering Limited, said: “We are delighted to be establishing Williams Grand Prix Technologies, bringing F1-derived innovation and pedigree to a wide range of other sectors. Williams Grand Prix Technologies offers a unique mix of engineering experience, expertise and capabilities to solve customers’ problems and we have already received significant interest from a diverse set of clients even before launch. We will be using skills and assets that have been established, developed and refined over five decades of competing at the highest level of motor racing on a global stage, which is a unique pedigree that only Williams can offer. Being part of the wider Dorilton group of companies also allow Williams Grand Prix Technologies to offer services from across the group to further enhance the technologies and services available to the customer”.
11 Apr 24. Darktrace upgrades outlook again. Shares in cybersecurity company Darktrace (DARK) climbed almost 8 per cent in response to higher guidance for 2024 revenue growth, the second time in two months. The company said its annualised recurring revenue growth would be between 22.25 per cent and 23 per cent, lifting the low end from 21.5 per cent, and also lifted the expected full year adjusted Ebitda margin from 21 per cent to 23 per cent. The third quarter saw sales of $176mn (£140m) with an adjusted cash profit of above $37m. CFO Cathy Graham said cyber threats were coming thick and fast and businesses were spending more on security as a result. “[Hackers] are increasingly exploiting generative AI, automation and cybercrime-as-a-service to increase the speed, sophistication, and success of cyber security attacks,” she said. This week, Darktrace also said Mick Lynch and other large shareholders would no longer have the right to nominate directors due to their stakes falling. Lynch’s appointee Patrick Jacob failed to get on the board in December after shareholders voted him down. (Source: Investors Chronicle)
10 Apr 24. Hexcel drops after surprise appointment of former Spirit Aero chief as CEO. Hexcel’s (HXL.N), surprise appointment of the former top boss of troubled aerospace supplier Spirit AeroSystems (SPR.N) as its new CEO spooked investors on Wednesday, sparking a 12% fall in its shares. Hexcel, which supplies composite parts such as carbon fibers and structural adhesives to Boeing (BA.N), and Airbus (AIR.PA), said on Tuesday current chief Nick Stanage will transition to an executive chairman role and will retire at the end of the year.
“We note the surprising nature of this announcement as the company did not communicate to the market that it had been pursuing new leadership,” BofA Securities wrote in a note, while downgrading the stock to “underperform” from “neutral”.
Tom Gentile, who will take over as Hexcel CEO, stepped down from his role at Spirit Aero in October after a series of industrial challenges left the supplier struggling to stabilize cash flows. He had been the top boss of the company since 2016.
Spirit’s shares declined more than 60% while he was the CEO. His tenure was marked by a series of supply chain challenges and production defects, most recently misdrilled holes on the Boeing 737 MAX aft pressure bulkhead.
The company has also been under regulatory scrutiny in recent months following the mid-air cabin panel blowout of a Boeing 737 MAX 9 jet, the fuselage for which was made by Spirit.
“We question whether his tenure with a heavily Boeing-related supplier will translate well to Hexcel, which has more business with Airbus,” wrote Ken Herbert of RBC Capital Markets in a note.
Hexcel said Gentile’s appointment as CEO and President followed a “comprehensive succession process”. He is expected to assume the role on May 1 and be appointed to the board following the annual shareholder meeting on May 2. (Source: Reuters)
10 Apr 24. Post-Brexit boost for the City as EU rules on stock market research scrapped. FCA consults on plans to remove laws underpinning £9trn industry. EU rules on stock market research underpinning Britain’s £9trn money management industry will be scrapped in a post-Brexit boost for the City. The Financial Conduct Authority (FCA) is consulting on plans to remove laws forcing fund managers to pay separately for research on UK-listed companies. EU rules prevented stock brokers from “bundling” their research into a package of trading services sold to fund managers in 2018. The FCA said the current system was too complex and disadvantaged smaller fund managers. The system has also been blamed for the current malaise on the UK stock market, with a lack of research contributing to less investment in UK stocks. Under the new proposals, research and trading fees will be combined in a single payment.
Sarah Pritchard, an FCA director, said: “High-quality, easily accessible investment research is a vital part of a healthy, dynamic capital market. It supports the decisions investors make.
“We are proposing to provide more options on how to pay for such research, helping boost competition and making it easier to buy research across borders.”
The regulations were part of Brussels’ MiFID II rulebook, which were introduced in early 2018 before the UK quit the EU.
Before this fund managers would get their company research for free from stockbrokers.
The overhaul led to a dearth of research on UK companies, as brokers cut back on offering research.
“One major reason for the City of London’s current malaise is a dearth of investment research to inform decisions,” said Fraser Thorne, founder of Edison, the investment research firm.
“Asset managers and institutional investors remain unaware of the breadth of opportunities, and innovative new firms are left to languish in obscurity.”
EU rules on stock market research underpinning Britain’s £9 trn money management industry will be scrapped in a post-Brexit boost for the City.
The Financial Conduct Authority (FCA) is consulting on plans to remove laws forcing fund managers to pay separately for research on UK-listed companies.
EU rules prevented stock brokers from “bundling” their research into a package of trading services sold to fund managers in 2018.
The FCA said the current system was too complex and disadvantaged smaller fund managers.
The system has also been blamed for the current malaise on the UK stock market, with a lack of research contributing to less investment in UK stocks.
Under the new proposals, research and trading fees will be combined in a single payment.
Sarah Pritchard, an FCA director, said: “High-quality, easily accessible investment research is a vital part of a healthy, dynamic capital market. It supports the decisions investors make.
“We are proposing to provide more options on how to pay for such research, helping boost competition and making it easier to buy research across borders.”
The regulations were part of Brussels’ MiFID II rulebook, which were introduced in early 2018 before the UK quit the EU.
Before this fund managers would get their company research for free from stockbrokers.
The overhaul led to a dearth of research on UK companies, as brokers cut back on offering research.
“One major reason for the City of London’s current malaise is a dearth of investment research to inform decisions,” said Fraser Thorne, founder of Edison, the investment research firm.
“Asset managers and institutional investors remain unaware of the breadth of opportunities, and innovative new firms are left to languish in obscurity.” (Source: Daily Telegraph)
10 Apr 24. Semiconductor Research Corporation Announces 2024 Call for Research, $13.8m in Funding Opportunities. Semiconductor Research Corporation (SRC), a premier research and workforce development consortium, is announcing the start of solicitation season with $13.8m in funding opportunities. Calls for research will begin in early April and will run through June. Research programs releasing solicitations include Nanomanufacturing Materials and Processes (Apr 10); Packaging + Center for Heterogeneous Integration Research in Packaging (Apr 10); Hardware Security (May 7); Computer-Aided Design and Test (May 7); and Environment, Safety, and Health (May 7). Details and submission information will be available at https://src.secure-platform.com/a/page/GetFunded beginning April 10, 2024.
Research ideas selected for 3-year projects should align with the Microelectronics and Advanced Packaging Technologies (MAPT) Roadmap. Building upon the 2030 Decadal Plan for Semiconductors, the MAPT Roadmap serves as a guiding light for initiatives such as the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program, and SMART USA Institute, the industry-led CHIPS Manufacturing USA Institute bid. Both the Decadal Plan and the MAPT Roadmap are the results of collaboration between hundreds of industry and academic experts. By aligning our research call to the MAPT Roadmap, we ensure that selected research proposals address topics of utmost importance to the semiconductor industry.
Along with creating critical, industry-relevant technology, these calls will fund degrees for between 50 to 100 student scholars of diverse ethnicity, gender, and geography. The semiconductor industry is facing a severe talent shortfall in coming years. While SRC programs have prepared 20% of all semiconductor Ph.D. in the United States, we are committed to growing our student base by fostering a balanced mix of bachelors, masters, and Ph.D.-level grads while helping students of all backgrounds to feel comfortable and safe pursuing their chosen career. SRC welcomes submissions from US and international colleges and universities that sponsor bachelor’s degrees to postdocs. SRC members include global leaders in the semiconductor industry who are committed to investing in revolutionary research, a more diverse and inclusive community, and a long-term, worldwide outlook for sustainability. Learn more at https://src.secure-platform.com/a/page/GetFunded.
About SRC
Semiconductor Research Corporation (SRC.org), a world-renowned, high technology-based consortium, serves as a crossroads of collaboration between technology companies, academia, government agencies, and SRC’s highly regarded engineers and scientists. Through its interdisciplinary research programs, SRC plays an indispensable role in addressing global challenges, using research and development strategies, and advanced tools and technologies. Members of SRC work synergistically together, gain access to research results, fundamental IP, and highly experienced students to compete in the global marketplace and build the workforce of tomorrow. (Source: BUSINESS WIRE)
09 Apr 24. GE Aerospace finds freedom as a singleton.
- Savings can be made from cutting bloated overheads
- Other remnants of former group can be sold off
One of the US’s most storied conglomerates has completed its break-up, as GE spun out its $33bn (£26bn)-turnover power and renewable energy business, GE Vernova (US:GEV), via a listing on the New York Stock Exchange last week.
Its disentanglement followed the hive-off of the $20bn-a-year GE Healthcare (US:GEHC) in January. What remains is a company focused on the aerospace market that chair and chief executive Larry Culp described as “maybe not as big as GE once was, but big enough”.
Culp has masterminded the transformation of GE, shaving more than $100bn off its debt pile and then sketching out the plan for this year’s split three years ago. He remains with the core business now known as GE Aerospace (US:GE), comfortably the biggest maker of jet engines in the world with $32bn of adjusted revenues.
It has a fleet of 44,000 commercial aircraft engines or almost half of the global fleet. Its share of the market is bigger than RTX’s (US:RTX) Pratt & Whitney and Rolls-Royce (RR.) combined, according to Wells Fargo Securities.
On top of this, it has a defence and propulsion technologies arm that has around 26,000 engines in service, powering General Dynamics’ (US:GD) F-16 and Boeing’s (US:BA) F-15 fighter jets, as well as the latter’s Apache and Sikorsky’s Black Hawk helicopters. Both sides of the business are growing, with increased defence spending in the US and Europe set to push global military expenditure from $1.8tn last year to $2.1tn by 2028.
It is the commercial aerospace side of the business that offers the greatest opportunity, though, with the Airbus (FR:AIR) and Boeing duopoly currently trying to ramp up production of narrowbody planes to fill orders that already stretch into the 2030s. “We really are at a point in time where demand isn’t our challenge,” Culp said at an investor day last month.
Boeing expects to achieve “low double-digit” growth in its revenue over the next two years, and for operating profit to outpace this, increasing from $5.6bn last year to between $7.1bn-$7.5bn in 2025. By 2028, it expects to be generating $10bn of operating profit a year, with a 100 per cent cash conversion ratio.
GE’s aerospace arm “was always the crown jewel” of the former conglomerate, according to Morningstar equity analyst Nicolas Owens. It was the cash cow that allowed the group to make investments in, or prop up, other ventures.
“What had to happen for Vernova to be spun off is GE had to put several bn dollars of cash into the business in order to have it stand on its own,” he said. “[GE’s] jet engine business is an incredible business. You have 30-year visibility into lots of revenue, lots of profitability.” The company also has a wide economic moat given its technical capabilities and the high cost to airlines of switching suppliers, with much of the industry locked into long-term service agreements.
GE’s engine portfolio also has more favourable characteristics than most of its peers, according to Wells Fargo Securities analyst Matthew Akers.
Almost two-thirds of its engines are in their mid-life range (between 6 and 20 years old), which is the sweet spot in terms of higher-margin aftermarket revenues. Pratt & Whitney has more new engines, where aftermarket revenues are limited by the fact they are still under warranty, while Rolls-Royce’s engine fleet is much older. Rolls-Royce is also largely focused on the widebody part of the market but most of the anticipated growth is in the narrowbody sector powering models like Airbus’s A320neo and Boeing’s 737 Max.
GE Aerospace is also targeting a 1.5 percentage point cut in selling, general and administrative costs post spin-out but Wells Fargo’s Akers thinks there is scope for a much bigger reduction of between 3 and 5 percentage points, as the company carries more non-operations (IT, HR and finance) roles than peers – a hangover from its conglomerate structure. Then there is the “leftover stuff” it has inherited, Owens said, such as a long-term life insurance care portfolio and a Polish real estate portfolio, which can presumably be sold off.
He expects GE Aerospace to be able to generate cash flows of around $85bn over the next decade, and with the company pledging to hand back 75 per cent of excess cash to shareholders through dividends and up to $15bn in buybacks over the next three years, it should offer a steady source of income. This comes at a cost, though. GE’s share price has almost doubled over the past 12 months and the shares trade at over 33-times FactSet consensus earnings – a substantial premium over their five-year average and of peers RTX (18-times), Rolls-Royce (26-times) and Safran (28-times). (Source: Investors Chronicle)
09 Apr 24. Rheinmetall leads defence stocks slump as traders worry after record run. Germany’s Rheinmetall (RHMG.DE), led European defence stocks into their biggest one-day drop in a year on Tuesday, with traders turning nervous about the sector’s record-breaking run and analysts pointed to potentially stretched valuations.
Defence stocks have been among the best performers in Europe for over three years as portfolio managers poured money into the sector, betting on rising military spending in the wake of Russia’s invasion of Ukraine in February 2022.
Goldman Sachs said in a note released on Tuesday that European defence stock valuations now likely presented more downside than upside risk going into 2025.
“While our Portfolio Strategy team are relatively constructive on the European Defence outlook, they are not recommending EU Defense given the challenging valuation premium and recent outperformance,” the note said.
A gauge of European aerospace and defence stocks (.SXPARO), was down more than 3% by 0956 GMT, on track for its biggest single-day fall since March 2023. The index has doubled in value since Russia’s invasion of Ukraine.
One Frankfurt-based trader said there was no immediate reason behind the plunge and pointed to possible profit taking.
Rheinmetall was last down 10%, set for its biggest one-day fall since August 2022.
Sweden’s SAAB (SAABb.ST), Italy’s Leonardo (LDOF.MI), and France’s Dassault Aviation (AM.PA), were also among the biggest fallers on the index, down between 4.3% and 8.6%.
At 20 times its expected earnings, defence stocks trade at a 45% premium to the broader European equity market (.STOXX), versus a historical discount of 10%, according to Goldman Sachs. (Source: Google/Reuters)
08 Apr 24. RENI – Resilient Energy Inc. Unveils Shareholder Update Following Groundbreaking Acquisition of Challenger Aerospace & Defense, Inc., Elevating Corporate Vision.
Resilient Energy, Inc. (OTC Markets: RENI) (“RENI” or “the Company”) releases a shareholder update on the successful acquisition of Challenger Aerospace & Defense, Inc (“CADI”), a premier designer, manufacturer, and tester of aerial, surface, and maritime unmanned vehicles catering to private and commercial operators, government agencies, industrial, agriculture, and defense organizations. RENI’s CEO, Mr. Jon Bianco, provides a comprehensive update on immediate revenue growth, supported by over $3 m in purchase orders, impacting the Company’s enterprise value.
Dear Shareholders,
I am pleased to announce a momentous milestone for Resilient Energy, Inc. (OTC Markets: RENI). On April 2, 2024, we successfully completed the acquisition of Challenger Aerospace & Defense, Inc. (CADI), marking our entry into the thriving $35bn drone and electronic surveillance technology markets. This strategic move positions RENI for accelerated growth, diversification, and enhanced shareholder value.
Challenger Aerospace & Defense, Inc., founded in 2009, is a leading designer, manufacturer, and tester of unmanned aerial, surface, and maritime vehicles. With an impressive portfolio, a robust sales pipeline, and existing purchase orders exceeding $3m, CADI brings substantial revenue potential and invaluable intellectual property to RENI. As a wholly owned subsidiary, CADI will continue its operations under existing management, ensuring continuity and expertise within the organization.
The acquisition of CADI aligns with RENI’s selective acquisition strategy in the technology and energy sectors. Looking ahead, we anticipate exponential sales growth driven by financing purchase orders and expanding manufacturing facilities. CADI’s clientele includes domestic and international government agencies, positioning us strategically within the security and law enforcement sectors. Furthermore, as CADI introduces new products, we foresee expanded market reach and revenue streams.
Mr. LeRoy Aday, President of Challenger Aerospace & Defense, Inc., brings over three decades of impressive experience in founding, leading, and scaling businesses in the aerospace and defense industries. His leadership, commitment to innovation, and excellence will drive RENI’s ascent as a global leader in unmanned technologies. We are excited about the synergies and opportunities that lie ahead as we integrate CADI into the RENI group of companies.
The global drone market is projected to reach USD 101.1bn by 2032, driven by technological advancements and expanding applications across industries. Drones play a pivotal role in sectors such as agriculture, logistics, surveillance, and defense. CADI’s focus on surveillance systems will further diversify our offerings and capitalize on the increasing demand for unmanned technologies.
In conclusion, the acquisition of Challenger Aerospace & Defense, Inc. represents a significant step forward for Resilient Energy, Inc. We are well-positioned to capitalize on the immense opportunities presented by the burgeoning drone market. I extend my gratitude to our shareholders for their continued support and confidence in our strategic vision. Together, we will embark on this exciting journey of growth and innovation.
Expect regular updates on our progress and successes as we actively communicate our vision and provide frequent company updates through various channels.
Sincerely,
Jon Bianco
CEO, Resilient Energy, Inc.
About Resilient Energy, Inc.
Resilient Energy, Inc. (OTC: RENI) (www.resilientenergyinc.com) operates as an independent energy company with a strategic business plan centered on the acquisition, exploration, development, and production of North American conventional oil and gas properties. The company is committed to expanding its portfolio by acquiring businesses in manufacturing, technology, and other sectors to diversify its revenue streams and leverage management’s 30 years of experience and reduce reliance on the volatile oil and gas markets. Resilient Energy distinguishes itself by offering a consistent deal flow and maintaining operational efficiency at low costs.
About Challenger Aerospace & Defense, Inc.
Challenger Aerospace & Defense, Inc. (CADI) is in Reno, Nevada and was established in 2009. Challenger Aerospace is a conglomerate of multiple companies focused on providing the best unmanned systems to our customers. These currently include: AeroComputers, Challenger Precision Machine, Challenger Mission Systems, Challenger Flight Systems, Challenger Training and Support, Challenger Aerospace: Dragon Works Team, Challenger Marine Systems and Challenger Ground Systems. All these companies serve myriad of customers from its State-of-the-Art Facility in the United States. Challenger serves a global consumer-base consisting of private and commercial operators, government agencies and national defense departments. (Source: PR Newswire)
08 Apr 24. Tyto Athene, an Arlington Capital Partners Portfolio Company, Bolsters Space System Capabilities Through the Acquisition of Microtel, LLC. Tyto Athene, LLC (“Tyto”), a federal systems integrator of mission-focused digital transformation solutions, has completed its acquisition of Microtel LLC (“Microtel” or the “Company”), a software development and systems engineering firm deeply embedded in long-term, space missions for NASA and international space programs. Tyto is a portfolio company of Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government regulated industries.
Tyto is an innovator in Space Domain Awareness and Combat Power with expertise in Space Threat Intelligence Analysis and Modeling and Simulation. The acquisition of Microtel further strengthens Tyto’s longstanding customer relationships and capabilities across the space domain, as the Company’s key software development specialties include mission-critical flight software to control robotic spacecraft, rovers, and other onboard flight applications for command, telemetry, and science data processing.
Michael Lustbader, a Managing Partner at Arlington, said, “For nearly three decades, Microtel has been a proven leader in software development for space programs and this expertise complements our existing space command work. This acquisition underscores Tyto’s commitment to delivering exceptional solutions and expanding its presence in critical markets, including its relationship with NASA. We look forward to supporting Dennis as he drives the integration and advances Tyto’s growth.”
“I am very pleased to welcome Microtel to the Tyto family,” said Dennis Kelly, CEO of Tyto Athene. “Microtel’s impressive team of professionals are hands-on technologists with deep expertise in software development and AI/ML technologies. We look forward to leveraging our combined capabilities to further our growth and bring new innovations to our customer’s mission.”
“Our shared vision of innovation will allow us to explore other mission areas we can support,” said Jerry Hengemihle, CEO of Microtel. “We are excited for our future with Tyto, and we look forward to delivering next-generation solutions that expand our support to NASA and other federal agencies.”
About Tyto Athene
Headquartered in Herndon, Virginia, Tyto Athene harnesses the power of technology to provide solutions that shape the future. With over 60 years of experience providing mission-focused digital transformation and nine offices across the U.S., our team of experts connects people with technologies to seamlessly integrate and modernize enterprise-level operations that increase mission resiliency, capability, and flexibility for U.S. defense, national security, intelligence, space, and public safety agencies around the globe. Tyto’s deep understanding of the customer’s mission brings proven results. For more information, visit https://gotyto.com/ or Tyto Athene on LinkedIn. (Source: BUSINESS WIRE)
02 Apr 24. Telesat + Government of Canada agree to C$ billions loan terms in support of Lightspeed. The letter states that, following several months of negotiations between Telesat and federal officials, the Government of Canada (GoC) is prepared to invest C$2.14bn in Telesat Lightspeed by way of a loan to Telesat LEO Inc., a wholly owned subsidiary of Telesat, that is developing and will own and operate the Telesat Lightspeed LEO global broadband satellite constellation.
The loan will carry a floating interest rate that is 4.75% above the Canadian Overnight Repo Rate Average (CORRA) with a 15-year maturity. Interest is payable in-kind during the Telesat Lightspeed construction period, followed by a 10-year sculpted amortization. Furthermore, Telesat LEO Inc. will provide the GoC with warrants for 10% of the common shares of Telesat LEO based upon an equity valuation for Telesat LEO of US$3 bn.
“Telesat Lightspeed is a highly innovative and disruptive global broadband network and the largest space program in Canada’s long and distinguished history as a space faring nation,” said Dan Goldberg, Telesat’s President and CEO. “I am delighted with the engagement we have had with the Government of Canada on this flagship program, which will help bridge the global digital divide, create and sustain thousands of high-quality jobs in Canada, spur domestic innovation, investment and exports, and ensure that Canada is at the forefront of the rapidly growing New Space Economy. The Government of Canada has been a strong supporter of the Telesat Lightspeed program and we applaud their leadership and foresight. We estimate that, in addition to the roughly $2 bn of capital cost savings, we will realize roughly $750 m of savings in reduced borrowing costs relative to the original Telesat Lightspeed program. Telesat Lightspeed will revolutionize broadband connectivity for enterprise and government users and represents a highly compelling growth and value creation opportunity for Telesat and its stakeholders.”
The GoC investment is subject to certain conditions, including the entry of definitive documentation with the GoC and Telesat’s other financing sources to the GoC’s satisfaction. (Source: Satnews)
05 Apr 24. L3Harris Technologies (NYSE:LHX) has signed a definitive agreement under which an affiliate of Kanders & Company, Inc. will acquire its antenna and related businesses for $200m. The transaction is expected to close this quarter and is subject to customary closing conditions and regulatory approvals. The agreement aligns with L3Harris’ portfolio-shaping strategy for non-core assets, with transaction proceeds to be used consistent with capital allocation plans. The transaction is made up of $175m of cash at closing and a $25m seller note. The businesses L3Harris will divest offer a variety of airborne and ground-based antennas and test equipment. They are part of the Space & Airborne Systems segment and employ approximately 375 people. (Source: BUSINESS WIRE)
05 Apr 24. Epiq Solutions (“Epiq”), a portfolio company of The Veritas Capital Vantage Fund, L.P. (“Vantage Fund”), and leading provider of software defined radios (“SDR”) and space computing solutions for governments and enterprises, today announced the completion of its acquisition of CyberRadio Solutions (“CRS”), a business unit of G3 Technologies providing high-performance radio frequency (“RF”) products including tuners, downconverters, and signal generators supporting the most demanding defense and intelligence applications.
“Serving our customers is our highest priority, and joining the Epiq platform will enable CRS to benefit from increased scale and investment in R&D to continue leading-edge innovation”
Post this
Founded in 2011, CyberRadio’s mission is focused on developing open architecture high performance RF receiver and embedded signal processing platforms with industry leading RF performance, channel count, and tuning range up to 50 GHz. This complements Epiq’s focus on small form factor open architecture SDR modules and platforms where size, weight, and power are critical to enabling customer mission success. The expanded Epiq portfolio has coverage supporting maritime, land, air, and space domains, for a range of customer use-cases including remote sensing, drone detection, direction finding, and communications.
“CyberRadio Solutions’ team and product portfolio brings a new dimension to Epiq, where exceptional RF performance is a mission enabler, and we are thrilled to welcome them to our team,” said John Orlando, CEO and co-founder of Epiq Solutions. “Our customers can count on Epiq to be there with both products and technical expertise to enable their RF spectrum dominance challenges as they emerge in the coming years.”
“Serving our customers is our highest priority, and joining the Epiq platform will enable CRS to benefit from increased scale and investment in R&D to continue leading-edge innovation,” said Rob Diefes, President of CRS.
CRS will join the Epiq platform and continue operating out of Mount Airy, MD under its current leadership team led by President Rob Diefes.
Latham & Watkins LLP served as legal counsel to Epiq and Veritas. Miles & Stockbridge served as legal counsel to CRS, and Monument Capital Partners served as financial advisor to CRS. Financial terms were not disclosed.
About Epiq Solutions
Epiq Solutions develops cutting edge SDR products and processing solutions to enable spectrum dominance for maritime, land, air, and space domains. With more than 14 years serving government and commercial enterprise customers, and 20K+ devices fielded to date, Epiq Solutions is a trusted partner with proven heritage delivering open architecture products in radically small form factors where time-to-market, cost, and performance are critical for mission success. For more information, visit www.epiqsolutions.com.
About CyberRadio Solutions
CyberRadio Solutions delivers affordable, high-performance RF/Microwave SDRs with frequency ranges up to 50 GHz. For over a decade, CyberRadio has served the most demanding mission requirements for marquee government and commercial customers. CyberRadio offers mission-critical products with a range of applications including wireless signal collection and analysis, geolocation, electronic warfare, signals intelligence, spectrum monitoring, beam-forming, direction finding, and wideband recording.
About Veritas Capital
Veritas is a longstanding technology investor with over $40 bn of assets under management and a focus on companies operating at the intersection of technology and government. The firm invests in companies that provide critical products, software, and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. Leveraging technology to make a positive impact across vitally important areas, such as healthcare, education, and national security, is core to the firm. Veritas is a proud steward of national assets, improving the quality of healthcare while reducing cost, advancing our educational system, and protecting our nation and allies.
The Vantage Fund is a $1.8 bn fund targeting opportunities in the middle market. The Vantage Fund seeks to leverage the integrated platform, unique capabilities and demonstrated intellectual property of Veritas. For more information, visit www.veritascapital.com., (Source: BUSINESS WIRE)
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR). For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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