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04 Jul 24. New DC Gov’t Relations Firm Launches to Champion Frontier Tech Companies. Today marks the official launch of Washington Office, a new DC-based strategy firm that aims to redefine government relations by focusing on frontier tech that powers the national interest. Specifically, Washington Office (W.O.) will serve as the DC team for startups and leading companies working to harness emerging technology – including artificial intelligence, autonomous systems, energy, materials sciences, robotics, space systems, synthetic biology, quantum computing, and beyond – to advance U.S. security and prosperity.
As the name implies, the firm will serve as a fractional “Washington office” for forward-thinking clients. W.O. will provide strategic communications, business development, and government relations support under one roof. The firm is launching with a bipartisan team of advisors offering deep expertise at the intersection of technology and public policy and in strategic partnership with Capital Factory, one of the nation’s leading startup incubators.
“This is the most pivotal moment in human history,” said Joshua Baer, W.O. co-founder and founder of Capital Factory. “For America to stay in the lead, the voices of ‘Little Tech’ need to be heard in the nation’s capital. There’s a reason this firm is born on the Fourth of July.”
“We built Washington Office because DC consultants claim to understand tech, but they’re locked into the status quo, not the future,” added W.O. co-founder Evan Burfield. “Our clients will be championed by people who’ve been policymakers and technologists — who actually understand product and have built things – and who have worked at all levels in Democratic, Republican, and nonpartisan leadership positions.”
“This firm will be unlike any other in the nation’s capital,” said W.O. co-founder Miles Taylor. “We’re building a tech-forward team that’s overseen sensitive national programs, negotiated deals with foreign leaders, and overhauled tech policy inside and outside of government. To put it more bluntly: we’re not slow-moving, boxy-suit lobbyists. We’re the get-shit-done crew.”
The firm’s advisors will support clients by guiding them through public-policy strategy and helping to advance the future. Founding advisors include the below individuals – and others to be announced:
Joshua Baer (Founder, Capital Factory); Sai Dhanak (former Head of Product, True Anomaly); Dan Fata (former Vice President of Government Affairs, Lockheed Martin; former Deputy Assistant Secretary for Europe/NATO, Department of Defense); Tim Gallaudet (Rear Admiral USN (ret.), former Acting Administrator, National Oceanic and Atmospheric Administration); Camille Stewart Gloster (former Deputy National Cyber Director, The White House); Hannah Hummelberg (former Director of Strategic Communications, Department of Homeland Security); Bob Kadlec (former Assistant Secretary, Department of Health and Human Services); Sean Kirkpatrick (former Director, All-Domain Anomaly Resolution Office, Department of Defense); Caitlin Legacki (former Senior Advisor to the Secretary, Department of Commerce); Mike MacKay (former National Security Advisor, U.S. Senator Joni Ernst); Jason Mello (former Chief Research and Technology Officer, Air Force Office of Scientific Research); Jeff Modisett (former Attorney General, Indiana); Brandon Pollak (former Head of Global Engagement, Bird); Dan Prieto (former Director for Cybersecurity, National Security Council, The White House); Dhruva Rajendra (Co-Founder, Latch); Denver Riggleman (former Member of Congress); Greg Schultz (former Presidential Campaign Manager); Rina Shah (GOP Strategist, Social Entrepreneur); Michael Slaby (former Chief Technology Officer, Obama for America); Miles Taylor (former Chief of Staff, Department of Homeland Security); Brad Viator (former Vice President, Edison Electric Institute); Patrick Weninger (former Senior Intelligence Service, Station Chief, CIA); Rear Admiral Mike Wettlaufer (former Commander, Military Sealift Command); Evan Burfield (Founder, 1776; former CEO, Helm).
Upcoming Initiatives:
- NATO to the Future Event: On July 9 at Dock5 in D.C.’s Union Market District, Washington Office will co-host “NATO to the Future,” a micro-summit bringing together NATO leaders, tech companies, and policymakers to discuss the future of technology and its implications for national and international security.
- New Tech Hub: Washington Office will provide pro-bono support for a major new tech hub in Washington, D.C. – to be announced on July 9. This initiative will be a center for innovators and policymakers to collaborate and drive progress on emerging technologies.
Washington Office will be based in Union Market District, partnering with EDENS – a leading national retail and mixed-use developer – to ensure its clients have a home in the nation’s capital. For more information, please visit www.YourWashingtonOffice.com.
(Source: BUSINESS WIRE)
04 Jul 24. Rheinmetall, Leonardo CEOs say deal paves way for EU defence consolidation. The newly-formed joint venture between Germany’s Rheinmetall (RHMG.DE), opens new tab and Italy’s Leonardo (LDOF.MI), opens new tab is a first step in the consolidation of the European defence vehicle sector, the chief executives of the two groups said on Thursday. Rheinmetall CEO Armin Papperger added that the agreement, announced on Wednesday, could capitalise on a European market worth more than 50bn euros ($53.99bn).
“My expectation is that, with (this) cooperation only on the vehicle side, there is a market of more than 50bn euros, a huge market that we can conquer,” Papperger said in a recorded message posted online.
“We can help Europe grow, together, and this is a very first small step on the vehicle side for consolidation on the European level,” he added.
The move could accelerate the consolidation of defence assets across Europe, a highly political endeavour where diverging national interests have so far proven somewhat of a hurdle.
However, Russia’s war with Ukraine has raised hopes for more concerted efforts, with Germany currently considering teaming up with private equity firm Carlyle to jointly acquire a majority in Thyssenkrupp’s (TKAG.DE), submarines and frigates division.
Last week, France agreed to buy the ASN submarine networks business from Nokia (NOKIA.HE) in the latest sign of a European government wanting to get a tighter grip on defence activities.
The alliance between Rheinmetall and Leonardo, which followed the breakdown of talks between Leonardo and Franco-German company KNDS, is in line with the two groups’ broader objective of creating pan-European consortia to develop new combat systems.
The two companies said on Wednesday the deal aims to produce tanks and other land defence systems.
“The target is to create a machine that is cutting-edge for the future. A machine that is cross-domain and interoperable, talking, in the future, to satellites, helicopters and aircraft,” Leonardo CEO Roberto Cingolani said. ($1 = 0.9261 euros) (Source: Google/Reuters)
02 Jul 24. John Cockerill Completes the Acquisition Process of Arquus. John Cockerill announces today the conclusion of the acquisition process of Arquus, the main French supplier of military vehicles, which began last January with the Volvo Group. The conclusion of the operation comes as France and Belgium recently signed a Memorandum of Understanding to support and oversee this alliance, with both states each entering at 10% in the capital of John Cockerill Defense. Beyond Arquus© vehicles and Cockerill© weapon systems, each a reference in their respective markets, John Cockerill Defense will also propose combined offers of vehicles equipped with light tank turrets to better serve ground forces worldwide. It aims for an annual turnover of 1 bn euros and a workforce of 2,000 professionals by 2026, with a global presence and major operational bases in Belgium, France, Italy, India, and Saudi Arabia. John Cockerill was advised by Crédit Agricole CIB as Sole Financial Advisor for this transaction, which was financed by Crédit Agricole CIB (Coordinator and Agent), BNP Paribas Fortis, and Société Générale Corporate and Investment Banking. (Source: ASD Network)
02 Jul 24. EIF and NATO Innovation Fund join forces to unlock private capital for Europe’s defence and security future.
- European Investment Fund and the NATO Innovation Fund, a venture capital fund backed by 24 North Atlantic Treaty Organization nations, enter partnership.
- Memorandum of Understanding signed in Brussels sets terms of closer collaboration.
- Goal is to expand funding for start-ups, SMEs and midcaps in defence, security, and resilience sectors.
The European Investment Fund (EIF) and the NATO Innovation Fund (NIF) signed a Memorandum of Understanding (MoU) to cooperate in supporting the long-term growth of the defence, security, and resilience sectors across Europe. The EIF is part of the European Investment Bank (EIB) Group and the NIF is a standalone venture-capital fund backed by 24 NATO countries.
The MoU aims to encourage more private-capital funds to become active investors in technology sectors associated with defence and security, enabling EU companies to raise equity funding from a broader range of sources. The partnership reflects the shared interest of the NIF and EIF in establishing a framework to support start-ups, small and medium-sized enterprises (SMEs) and midcaps, as well as in enhancing the whole ecosystem by involving all the main stakeholders.
“By facilitating regular dialogue and knowledge sharing, the EIF and NIF will ensure a cohesive approach to strengthening the investment ecosystem for defence, security and resilience,” said Marjut Falkstedt, chief executive of the EIF. “This will benefit SMEs, midcaps, and the broader European innovation landscape.”
The MoU also outlines plans for EIF-NIF cooperation on ad-hoc activities to share knowledge and raise awareness about the potential of investments in defence and security. This will help foster a comprehensive investment ecosystem, ensure effective outreach to private-capital funds, support companies in their investment plans and raise awareness of the investment opportunities in the defence, security, and resilience sectors among limited partners.
The collaboration with the NIF also is in line with the EIB Group’s Security and Defence Action Plan, which is expected to support the effort primarily through the EIB’s venture-debt product designed to address the funding needs of innovative companies, and which may complement EIF and NIF venture capital and private-equity funding in some cases. The signatories will also exchange information with the European Commission in areas where its potential involvement may prove beneficial for the purposes of the MoU.
“There is great momentum in deep tech that is propelling innovations to help strengthen European defence, security and resilience,” said Andrea Traversone, Managing Partner, NATO Innovation Fund. “We are excited to be collaborating with the EIF, the EIB Group and the Commission to unlock investment opportunities for European businesses, advance capacity building for dual-use innovation, and share best practices across investors, innovators and government.”
The collaboration between EIF and NIF will also focus on the design of new financial products to cater for companies’ needs. The strategic alliance between the EIF and NIF represents a significant step forward in strengthening Europe’s defence and security capabilities, unlocking new avenues for private investment, and driving innovation in these vital sectors.
About the European Investment Bank and European Investment Fund:
The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by its member states. It supports sound investments that contribute to EU policy objectives.
Financing for Europe’s security and defence industry is among the EIB Group’s strategic priorities. We provide a comprehensive range of financial support and solutions designed to meet the demands of companies and public sector entities in the security and defence sector, regardless of their size. From reconnaissance and surveillance, spectrum protection and control, to cybersecurity solutions, infrastructure and military mobility, our financing solutions are designed to bolster projects that keep Europe safe, resilient, and innovative.
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.
About the NATO Innovation Fund:
The NATO Innovation Fund is a venture capital fund, backed by 24 NATO Allies, that deploys more than €1bn in deep tech to address challenges in defence, security, and resilience. The fund invests independently, with 24 nations supporting its portfolio’s success and helping provide deep tech entrepreneurs with access to both commercial and government markets.
Participating NATO Allies are: Belgium; Bulgaria; Czechia; Denmark; Estonia; Finland; Germany; Greece; Hungary; Iceland; Italy; Latvia; Lithuania; Luxembourg; Netherlands; Norway; Portugal.(Source: BUSINESS WIRE)
02 Jul 24. New Dutch government seeks to dictate defence M&A.
The Dutch Ministry of Defence has put forward a bill for military planning that also seeks to screen defence management for interference from other countries. The Netherlands government’s working on a law that will step-up the role of government in defence mergers, acquisitions and investments, as well as enable the Ministry of Defence (MoD), to give directions to defence companies and provide a legal basis to steer the defence industry on strategic stocks, supplies chains, and production capacity.
The bill also intends to give the government the power to issue eligibility certificates to Dutch companies that seek to pursue assignments abroad, “screening for unwanted interference from other countries in their management structure,” according to a release from the Dutch MoD on 1 July.
Netherlands new right-wing government was installed on 2 July 2024, formed of a coalition conservative parties, principally the Dutch anti-Islam populist Freedom Party led by Geert Wilders. The coalition was made possible after Wilders agreed to give up his bid to be Prime Minister, and installed to the premiership Dick Schoof, a senior official at the Ministry of Justice that had led the Dutch intelligence Agency AIVD.
The bill, which is part of an action plan for scaling up production and supply of military equipment, will be open to consultation from 1 July until 1 September 2024, and consists of three parts: a declaration of suitability, a sectoral investment test, and the introduction of new powers for market organisation.
Declaration of suitability for Dutch companies
While the language on deterring unwanted interference from other countries in the management structure of dutch defence companies may be dismissed by some as nativist pandering, the declaration of suitability, a requirement to achieve an eligibility certificate for work abroad, has some standing, according to GlobalData Defence analyst Fox Walker.
“I expect this has come up in great part due to the ongoing strategic competition with China and Russia,” said Walker. “This type of legislation ought to help prevent China from gaining access to critical emerging technologies and reduce Russia’s ability to evade the sanctions placed on it for Putin’s illegal invasion of Ukraine.”
“I’m not too surprised to see this sort of legislation come up, and I would not be surprised to see cross-party support for this bill,” continued Walker.
The MoD release does not detail if there will be carve-outs in the legislation for working with other Nato Allies.
Questions remain to be answered about the impact this will have on ASML, the Dutch company that is the hinge on the world’s supply of semiconducting microprocessors.
Defence market planning in Netherlands follows international template
The sectoral investment test will prevent mergers, acquisitions and investments that would lead to risks for the deployment of armed forces. While the defence industry is unlikely to appreciate additional regulation in this arena, it is unarguable that the consolidation of defence production chains has led to a brittle infrastructure in the past, inflexible to industrial disruption, such as the Suez Canal obstruction of 2021, or the impositions of international sanctions against Russia following the full-scale invasion of Ukraine.
The final element of the bill will give the MoD and the Ministry of Economic Affairs and Climate (EZK) powers to give directions to companies, including the production and maintenance of equipment and cooperation with ‘knowledge institutions’ according to the release from the MoD. The bill will also allow a level of market planning that the MoD claims fits into European Union developments, and includes some language from the EU.
In putting in place market planning legislation, Netherlands is not alone in Europe or among Nato Allies, following in line with Canada, Finland, France and the US. The US Defense Production Act is a leading example of such planning, and has been supported by Executive Orders from President Biden and the Federal Trade Commission (FTC) Chair Lina Khan. (Source: army-technology.com)
01 Jul 24. Altair (Nasdaq: ALTR), a global leader in computational intelligence, announced it has entered into a definitive agreement to acquire all of the outstanding capital stock of Metrics Design Automation Inc. (Metrics), a Canadian company with a game changing simulation as a service (SaaS) business model for semiconductor electronic functional simulation and design verification. Closing of the transaction is subject to customary conditions.
The Metrics digital simulator, DSim, when combined with Altair’s Silicon Debug Tools, will deliver a world-class, advanced simulation environment with superior simulation and debug capabilities in the EDA and semiconductor space. The cloud-based business model has the potential to transform the semiconductor space by making high caliber EDA design tools much more affordable and accessible for companies looking to aggressively scale out simulations to accelerate design cycles.
Today, integrated circuit (IC) design verification has high licensing costs and may require hundreds and sometimes thousands of seats to run a single chip simulation. Additionally, these tools run on desktop machines, and are not typically cloud-native or cloud-enabled. The Altair and Metrics solution delivers the flexibility to run as a desktop app, on your own servers, or in the cloud and can run very large regressions with the customer paying only for what they use. It supports System Verilog and VHDL RTL for digital circuits targeting application specific integrated circuits (ASICs) and field programmable gate arrays (FPGAs). Because of this, simulations can be run concurrently and at scale, removing massive amounts of time and costs from the traditional design cycle.
“By combining our best-in-class software with Metrics’ cloud-based simulation as a service, we are excited to bring this groundbreaking technology to our EDA and semiconductor customers,” said James R. Scapa, founder and chief executive officer, Altair. “Altair is unique in our ability to merge simulation with industry-leading workload and workflow optimization technology, serving as a true partner for companies embracing innovative tools and resource delivery models in this highly specialized and high-stakes industry. Customers now have a choice in design verification.”
DSim will be available through Altair One, Altair’s cloud innovation gateway, where it will also be available for desktop download. Whether in the cloud, on your own servers, or on the desktop, DSim is fully featured and optimized for speed, capacity and accuracy, providing semiconductor, automotive, aerospace and defense customers with Altair’s leading digital simulation, visualization, and circuit debug technology, so they can quickly track down design problems and move the most complex devices into production earlier and with a higher degree of confidence.
“We are proud to be first-to-market with our game-changing design verification product and business model for the semiconductor industry,” said Joe Costello, executive chairman, Metrics. “Joining Altair will allow us to grow and provide an alternative option – whether on desktop, on your own servers, or in the cloud – to engineers looking for a flexible, modern, accurate, and fast design verification solution that is truly scalable.”
Metrics is led by Joe Costello, who is considered one of the founders of the modern EDA industry when he became President of Cadence Design Systems and drove annual revenues to over $1bn—the first EDA company to achieve that milestone. In 2004, he was awarded the Phil Kaufman Award by the Electronic System Design Alliance in recognition of his business contributions that helped grow the EDA industry.
About Altair
Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing (HPC), data analytics, and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit www.altair.com. (Source: PR Newswire)
01 Jul 24. XTI Aerospace, Inc. (NASDAQ: XTIA) (“XTI” or the “Company”) today announced that it has entered into an agreement with FC Imperial Limited (“FCIL”), an affiliate of a private global investment consortium, FinExic Concordia Group, (“FCG” or “Investor Consortium”), for a proposed strategic equity investment for shares of convertible preferred stock (the “Investment”) of up to $55m (the “Maximum Amount”) at a post-money valuation of $27m (the “Locked Valuation”), with the successful consummation of the entire transaction process.
Mr. Anindya Chakraborty, leading the investment structuring for the Investment Consortium, said “For well over a year, extensive discussions were held with XTI management and XTI engineering team along with review of sector trends and technologies being developed. The Trifan is unique and perhaps the most efficient, practical, versatile and commercially viable VTOL aircraft with clear attributes of ushering in a game changing reality to the aviation industry.”
Scott Pomeroy, chairman and CEO of XTI, stated, “XTI has had the pleasure of working with and sharing information with the investment team for over a year, and they have performed extensive technical and financial due diligence on XTI Aircraft Company and the TriFan. Assuming the completion of the proposed investment, we believe the additional capital will help accelerate the development of the TriFan through several major milestones including completion of the updated preliminary design review along with launching the critical design review phase in preparation for the assembly of XTI’s Test Aircraft No. 1. Importantly, we also believe that our relationship with the Investor Consortium, which is a true collaboration of values and vision, aligns the long-term interests of both organizations.”
Mr. Pomeroy continued, “The $275m valuation aligns with the fairness opinion delivered to the Inpixon Board of Directors prior to Inpixon’s merger with XTI Aircraft Company. This valuation reflects the progress we have made, especially since our last private company capital raise, which was based on a $100 m valuation.”
Mr. Chakraborty added that “The Trifan represents traditional time-tested stability, hyper-boosted with intelligent innovation and we believe its elegant, utilitarian, cross purpose design is expected to fill up the skies across multiple geographies, including in the emerging aviation markets and some of the fastest growing economies like India, SE Asia and Middle East. It is a bold statement for a new segment in the aviation industry and with its unparalleled blend of speed and long-range VTOL capabilities, we feel the TriFan is uniquely positioned to achieve widespread global adoption. It is tailored for a broad spectrum of applications, from critical healthcare and emergency services to para-military operations, elite corporate mobility, and the ultimate aspirational luxury for enthusiasts. The Investment Consortium is willing to work with XTIA to provide more capital and help facilitate additional raises as milestones are met.”
Proposed material terms of Investment
The parties have entered into an agreement which stipulates a structured process for the distribution of capital within a defined time frame at the Locked Valuation of $275m and issuance of convertible preferred stock for an investment up to $55m which will convert into common stock through defined exchange events subject to execution of a definitive purchase agreement.
Further details of the proposed investment will be included in the Current Report on Form 8-k which will be filed by the Company with the Securities and Exchange Commission.
About XTI Aerospace, Inc.
XTI Aerospace (XTIAerospace.com) is the parent company of XTI Aircraft Company (XTIAircraft.com), an aviation business based near Denver, Colorado, currently developing the TriFan 600, a fixed-wing business aircraft designed to have the vertical takeoff and landing (VTOL) capability of a helicopter, speeds of 345 mph and a range of 700 miles, creating an entirely new category – the vertical lift crossover airplane (VLCA). Additionally, the Inpixon (inpixon.com) business unit of XTI Aerospace is a leader in real-time location systems (RTLS) technology with customers around the world who use the Company’s location intelligence solutions in factories and other industrial facilities to help optimize operations, increase productivity, and enhance safety. For more information about XTI Aerospace, please visit XTIAerospace.com.
(Source: PR Newswire)
29 Jun 24. Police search Thales offices in three countries in corruption probe. Police in France, Spain and the Netherlands searched the offices of French military equipment provider Thales (TCFP.PA) between Wednesday and Friday as part of a corruption probe, a judicial source told Reuters on Saturday. A spokesperson for Thales confirmed to Reuters that searches had taken place but gave no further details beyond saying that the company was cooperating with authorities.
The searches were part of two different investigations, the judicial source said, confirming a report by French news channel BFMTV.
One opened in 2016 for suspected corruption of a foreign public official, criminal conspiracy and money laundering related to the sale of submarines and the construction of a naval base in Brazil, the source said.
The second opened in June 2023 for suspected corruption and influence peddling, criminal conspiracy and money laundering linked to the sale of military and civilian equipment abroad, the source said.
“Thales points out that it strictly complies with national and international regulations,” the Thales spokesperson said. “The company has developed and implemented a global compliance program that meets with the highest industry standards.” Investigations are still ongoing. (Source: Reuters)
01 Jul 24. Boeing to Acquire Spirit AeroSystems.
– Demonstrates commitment to aviation safety, improves quality for Boeing Commercial Airplanes
– Leverages Boeing enterprise engineering and manufacturing capabilities
– Maintains continuity for key U.S. defense and national security programs
– Supports supply chain stability and critical manufacturing workforce
– Provides long-term value for commercial and defense customers, employees and shareholders
Boeing [NYSE: BA] today announced it has entered into a definitive agreement to acquire Spirit AeroSystems [NYSE: SPR]. The merger is an all-stock transaction at an equity value of approximately $4.7 bn, or $37.25 per share. The total transaction value is approximately $8.3 bn, including Spirit’s last reported net debt.
Each share of Spirit common stock will be exchanged for a number of shares of Boeing common stock equal to an exchange ratio between 0.18 and 0.25, calculated as $37.25 divided by the volume weighted average share price of Boeing shares over the 15-trading-day period ending on the second trading day prior to the closing (subject to a floor of $149.00 per share and a ceiling of $206.94 per share). Spirit shareholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $149.00, and 0.18 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or above $206.94.
“We believe this deal is in the best interest of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders and the country more broadly,” said Boeing President and CEO Dave Calhoun. “By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes – centered on safety and quality.”
Boeing’s acquisition of Spirit will include substantially all Boeing-related commercial operations, as well as additional commercial, defense and aftermarket operations. As part of the transaction, Boeing will work with Spirit to ensure the continuity of operations supporting Spirit’s customers and programs it acquires, including working with the U.S. Department of Defense and Spirit defense customers regarding defense and security missions.
“We are proud of the role Boeing plays in supporting our men and women in uniform and are committed to ensuring continuity for Spirit’s defense programs,” said Calhoun.
Airbus SE and Spirit have also entered into a binding term sheet under which Airbus will acquire, assuming the parties entered into definitive agreements and receipt of any required regulatory approvals, certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger. In addition, Spirit is proposing to sell certain of its operations, including those in Belfast, Northern Ireland (non-Airbus operations), Prestwick, Scotland, and Subang, Malaysia. The transaction is expected to close mid-2025 and is subject to the sale of the Spirit operations related to certain Airbus commercial work packages and the satisfaction of customary closing conditions, including regulatory and Spirit shareholder approvals.
PJT Partners is acting as lead financial advisor to Boeing, with Goldman Sachs & Co, LLC and Consello acting as additional advisors. Sullivan & Cromwell LLP is acting as outside counsel to Boeing.
Additional information is available on the Events and Presentations section of www.boeing.com/investors.
01 Jul 24. Airbus enters agreement with Spirit AeroSystems. Airbus SE (stock exchange symbol: AIR) has entered into a binding term sheet agreement with Spirit AeroSystems in relation to a potential acquisition of major activities related to Airbus, notably the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France; of the A220’s wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; as well as of the A220 pylons in Wichita, Kansas, U.S.
With this agreement, Airbus aims to ensure stability of supply for its commercial aircraft programmes through a more sustainable way forward, both operationally and financially, for the various Airbus work packages that Spirit AeroSystems is responsible for today.
The transaction would cover the acquisition of these activities. Airbus will be compensated by payment of $559 m from Spirit AeroSystems, for a nominal consideration of $1.00, subject to adjustments including based on the final transaction perimeter.
Entering into definitive agreements remains subject to an ensuing due diligence process. Whilst there is no guarantee that a transaction will be concluded, all parties are willing and interested to work in good faith to progress and complete this process as timely as possible.
28 Jun 24. Tel-Instrument Electronics Corp. Reports Financial Results For Fiscal Year 2024. Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported a net income of $342K on revenues of $8.8m for the 2024 fiscal year ended March 31, 2024.
Highlights include:
- Revenues for the fiscal year ended March 31, 2024, increased $178K, or 2%, versus the prior fiscal year.
- Gross margin for the 2024 fiscal year was 46.6%, or 11.3 percentage points increase over the prior fiscal year.
- Operating expenses decreased by $666K, or 17% year-over-year, due primarily to client funded engineering projects.
- Operating income was $737K as compared to an operating loss of $898K in the prior fiscal year.
- Net income was $342K, compared to a net loss of $388K in the prior fiscal year.
- Working capital increased $1.2m or 39% to $4.3m as compared to the prior fiscal year.
- Backlog increased $640K from the prior year end to $7.2m as of March 31, 2024.
- Recent receipt of Airbus order for SDR/OMNI.
Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented, “The 2024 fiscal year was very difficult due to parts shortages that significantly impacted production. This parts procurement issues are gradually easing, and we expect strong growth in fiscal year 2025. We are extremely excited by the prospects of the SDR-OMNI and the SDR-OMNI/MIL. We were pleased that Airbus selected our SDR-OMNI test set for use in its world-wide manufacturing operations after an extensive technical evaluation. We are even more excited about the prospects for the SDR-OMNI/MIL which has the potential to replace thousands of obsolete test sets currently in use by the U.S. military. The SDR-OMNI and SDR-OMNI/MIL are the only multi-purpose avionic test set in the market that meets Class 1 military environmental specification. We are confident that these two multi-purpose test sets provide market leading capabilities. We are also introducing a GPS simulator software application this summer.
The CRAFT ECP contract will be critical for the Company as this is expected to generate five m dollars of annual production revenues, starting when the engineering work is completed. TIC successfully completed the Test Readiness Review (“TRR”) in April 2024. The next major milestone is the Production Readiness Review that is scheduled for later this year. We expect to start shipping upgraded Navy production units in the fourth quarter of FY 2025.
The Lockheed Martin F-35 MADL Test Set development program has been completed. We are currently in negotiations to supply up to 119 MADL test sets this year.
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com. (Source: BUSINESS WIRE)
01 Jul 24. Porvair trades at an 18% discount.
Sizeable petrochemical orders will shift over the second half
- Strength in the aerospace and petrochemical market
- Net cash contracts due to M&A and capex
Porvair (PRV), in keeping with many other industrial groups, has had to contend with a period in which aggregate demand in the economy has been stifled by the rising cost of capital. Yet, if nothing else, the past couple of years suggest that demand for the industrial filtration specialist’s products and expertise is relatively inelastic. That’s because the group’s technologies are embedded within many production processes, so cyclical levers are unlikely to have a disproportionate impact on sales. Indeed, the group notes that compound annual growth rates for revenue and adjusted earnings come in at 6 and 10 per cent respectively over the past 10 years.
That said, the group chief executive, Ben Stocks, does highlight some variance in the group’s end markets in the first half of FY2024, indicating that strength in the aerospace and petrochemical markets offset weakness in industrial and laboratory consumables. Ultimately, “product use and replacement is mandated by regulation, quality accreditation or a maintenance cycle”, which goes someway towards explaining why performance hasn’t been unduly affected by external macroeconomic factors, although demand will wax and wane due to periodic de-stocking in some markets – the group’s laboratory markets provided a case in point at the half-year mark.
The group also targets markets with long-term growth potential and/or those where “product use is mandated, and replacement demand is regular”. So, although the general economic environment hasn’t been overly favourable, the steady increase in environmental regulations governing industrial production continues to support the order book.
Financial performance was mixed through to the end of May. Statutory figures compared unfavourably with the 2023 half-year, but adjusted operating profit edged up by 2 per cent to £12.5m. Revenues were down by 3 per cent once the impact of M&A activity is stripped out. Margins were constrained by the de-stocking issues in the group’s laboratory markets, and foreign exchange translations trimmed adjusted profits by £0.4mn. Net cash contracted due to £12.7m given over to acquisitions and capex, the benefits of which will accrue through the remainder of the year.
Trading patterns are likely to be consistent with the first half, although the second half will benefit from the shipping of several larger petrochemical orders. The forward rating of 18 times consensus earnings doesn’t scream value but the 18 per cent discount to the target price suggests that there is still potential low-risk upside on offer. Buy.
Last IC view: Buy, 670p, 5 Feb 2024. (Source: Investors Chronicle)
28 Jun 24. DZYNE adds C-UAS capability with High Point Aerotechnologies acquisition. DZYNE Technologies, a developer and manufacturer of autonomous technologies, has announced the strategic acquisition of counter-uncrewed aerial systems (C-UAS) specialist High Point Aerotechnologies. The acquisition enables DZYNE to extend into the C-UAS domain. Al White, CEO of High Point, will continue to manage the C-UAS business as it becomes part of DZYNE as EVP of Air Defense Technologies.
High Point produces large military-grade air defence systems capable of kinetic defeats as well as the handheld Dronebuster jammer which became part of the range following the company’s acquisition of Flex Force earlier this year. DZYNE and High Point are both portfolio companies of Highlander Partners, a Dallas-based private investment firm. (Source: www.unmannedairspace.info)
01 Jul 24. HARLAND & WOLFF: Shares in the Belfast shipbuilder that built the Titanic were suspended today after the company failed to publish its annual results as it battles to shore up its finances. The shipbuilder said it expected to publish audited annual statements next week, with the “delay necessary to ensure the accurate recognition of revenues related to a multi-year contract”, which has now been agreed with its auditors.
The company remains in talks with the government over a £200 m support package, which will be crucial in paying off high-interest debt from Riverstone Credit Partners, an American credit investor, and fulfilling contracts it has already won. The loan guarantee from the government agency, UK Export Finance, won ministerial approval in December, but final sign-off is subject to a commercial rate review and ministerial consent. A decision is expected after the general election. (Source: The Times)
BATTLESPACE Comment: Another example of a botched MoD Procurement of the FSS. No doubt this will return to be built by Navantia in Spain losing many UK jobs if Harland & Wolf goes into Receivership.
02 Jul 24. SIXGEN, a full-spectrum solutions provider of cybersecurity products and expertise to U.S. national intelligence, defense and critical infrastructure customers, announced today its acquisition of Secure Enterprise Engineering, Inc. (“Secure-EE”). Secure-EE is a leading provider of bespoke cybersecurity products and services across various domains, and marks SIXGEN’s first acquisition following Washington Harbour Partners’ (“WHP”) investment in the company in November 2023. This acquisition brings unique capabilities, software products, tier I engineers and longstanding customer relationships, accelerating SIXGEN’s strategic vision to empower the digital warfighter.
“I am thrilled to combine forces with Laura, Shawn and the entire Secure-EE team to further amplify SIXGEN’s impact on the national mission,” said Jack Wilmer, CEO of SIXGEN. “Secure-EE has exceptionally differentiated proficiencies that are complementary to SIXGEN’s growth objectives and product roadmaps. This combination of talent and highly complementary IP creates a leading team and strengthens our ability to address the mission needs of our national partners and customers.”
Secure-EE utilizes its proprietary intellectual property (“IP”) to deliver a comprehensive suite of capabilities across multiple software infrastructure layers and cyber environments, including data management, provisioning, cyber tooling and command & control. Grounded in its unified platform of data management and integration based on the Joint Cyber Warfighting Architecture (“JCWA”), Secure-EE enables operators to focus on mission objectives rather than system configuration and infrastructure management. Additionally, the company’s Distant Rook platform, designed for automated provisioning of joint deployable hunt kits, further enhances the impact of SIXGEN’s RAVEN ecosystem, offering customers rapid integration of new tools for dynamically evolving missions.
“SIXGEN is the ideal strategic partner for Secure-EE,” said Laura Montano, Secure-EE Founder & CEO. “I am incredibly proud of what we have been able to accomplish to date, and where we’re headed with SIXGEN and Washington Harbour. This combination will enable us to deliver an expanded set of capabilities and resources to both new and existing customers as we focus on achieving an even greater mission impact,” said Shawn Oles, Chief Technology Officer at Secure-EE. Both Laura and Shawn will join as senior members of the SIXGEN team, along with their extensive engineering and technical talent.
This strategic partnership will enable deeper collaborations on the rapid development of innovative technologies and the deployment of unique capabilities to a growing set of customers and end users. The companies share similar cultures and values, focusing on mission impact and cutting-edge technologies, and are committed to attracting and developing the best talent in the industry, all while building the new industry standard for multi-domain cyber operations.
“We have been extremely impressed with the vision and leadership of the SIXGEN team, and their relentless desire to bring modern solutions to critical national security missions,” said Mina Faltas, Washington Harbour’s Founder & Chief Investment Officer. “The combination of SIXGEN and Secure-EE brings together two cybersecurity leaders, now poised to make significant impacts for our country.”
The acquisition follows SIXGEN’s recent additions to its executive leadership team, with Jack Wilmer as Chief Executive Officer and Jonathan Sholtis as Chief Operating Officer. SIXGEN has also recently appointed renowned cybersecurity leaders across the digital battlespace to their Board of Directors, with Andrew Boyd and Lieutenant General Charles Moore.
Washington Harbour was advised by Morrison & Foerster on legal matters and PwC on financial. Davis Agnor Rapaport Skalny (DARS) served as legal advisor and Evergreen Advisors provided M&A advisory to Secure-EE.
About SIXGEN
SIXGEN is a mission-driven leader in cybersecurity, dedicated to supporting the U.S. Department of Defense, intelligence community, and other federal agencies. With a focus on operational excellence and innovative solutions, SIXGEN ensures operational mission success in the digital era across all cyber domains.
For more information, please visit www.sixgen.io.
About Secure-EE
Since its inception, Secure-EE has been providing disruptive cybersecurity system engineering, architecture, and operational capabilities to make customer’s missions execute faster, smarter, and more securely. The Company works directly with senior IC and DoD leaders to develop bleeding edge concepts, coordinate community buy-in, specify cybersecurity requirements, and drive implementation. (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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