Sponsored by SPX Communication Technologies (TCI & ECS)
www.tcibr.com
www.enterprisecontrol.co.uk
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30 Sept 24. Codan Group Strengthens Tactical Communications Portfolio.
The Codan Group has strengthened its tactical communications capabilities by acquiring Kägwerks, a leader in dismounted soldier systems.
This acquisition bolsters Codan’s position in the tactical communications sector by integrating Kägwerks’ radio-agnostic dismounted soldier systems, widely recognized for their performance in contested environments.
Kägwerks’ proprietary DOCK™ hardware and software will enhance Codan’s offerings, positioning the company as a comprehensive solutions provider for military and law enforcement communications.
DOCK™ solutions provide soldiers with a lightweight network hub integrating disparate equipment into a single compact communications solution. This technology provides superior situational awareness and strategic advantage in field operations by optimising real-time battlefield intelligence.
Complementary Technologies
The acquisition of Kägwerks brings complementary capabilities to Codan’s Tactical Communications business unit and enables the company to broaden its portfolio of solutions. Notably, Kägwerks brings industry-leading intellectual property, technology, and products to the Codan Group.
This includes Kägwerks’ battle-proven, radio-agnostic dismounted soldier systems which will continue to be part of its systems portfolio of proprietary DOCK™ branded hardware and software solutions, supporting high-powered, third-party soldier communications in contested battlefield conditions.
These technologies will also position Codan Tactical Communications as a US soldier communications solutions provider delivering more comprehensive, full-spectrum tactical military connectivity solutions to customers.
Paul Sangster, Tactical Communications President and Executive General Manager, commented “We are excited to welcome the Kägwerks’ team to our Tactical Communications division and its technology suite to our solutions offering. Kägwerks’ intellectual property has been field-tested and accepted into U.S Department of Defence, and its proven pedigree enables us to participate in additional tenders for other Programs. A key strategic objective is to improve our revenue predictability, and by participating in Programs of Record this will increase predictability by securing stable, long-term multi-year contracts.
“The compatibility of DTC’s mesh radio with Kägwerks’ technology is highly complementary for our existing business. Together Tactical Communications and Kägwerks represent a full solutions provider that will increase opportunities across key military and law enforcement markets. The combined business also positions us to leverage international distribution channels, opening new growth and collaboration opportunities in global markets.”
Niko Hughes, Kägwerks’ President, said “We are excited to announce that Kägwerks’ has officially joined the Tactical Communications division of the Codan Group, a global leader in communications technology. By partnering with Codan’s world-class manufacturing capabilities and top-tier suppliers, we are positioned to scale our operations, delivering even greater quality, value, and service to support the needs of our customers.
“This relationship empowers Kägwerks’ to expand our global presence and reach new markets, enhancing our ability to serve customers worldwide. We remain fully committed to providing cutting-edge, radio agnostic dismounted soldier systems.”
This acquisition highlights Codan’s strategic focus on delivering mission-critical communication solutions and reinforces its commitment to global market expansion. (Source: https://www.defenseadvancement.com/)
03 Oct 24. ALL.SPACE announces $44m Raise boosting defence and space capabilities.
- UK – ALL.SPACE, a leading provider of advanced communications technology, has announced $44m in funding to fuel the commercial launch of its first-generation terminal.
- The raise was led by the BOKA Group, with additional participation from existing investors AE Ventures, the venture capital platform of AE Industrial Partners, LP, Seraphim Space, Promus Ventures, and other key investors.
ALL.SPACE develops advanced simultaneous multi-orbit, multi-network connectivity solutions designed to provide seamless, high-speed communications across air, land, sea, and space.
Their technology focuses on enabling satellite and terrestrial network convergence, allowing users to switch between communication systems without losing critical connectivity. This is vital for industries like defence, aerospace, and government operations that require reliable and resilient communication in remote or dynamic environments. By integrating satellite and ground-based networks, ALL.SPACE ensures continuous coverage and high bandwidth, supporting applications from secure communications to real-time data transfer, no matter where the user is located.
Paul McCarter, CEO of ALL.SPACE, commented on the raise, “This investment, led by the BOKA Group is a validation of ALL.SPACE’s vision and the progress we’ve made in transforming global communications.
All of our investors’ confidence reflects the critical role our technology plays in addressing the growing demand for resilient and seamless connectivity across defence and space industries. We are laser-focused on executing our strategy and delivering the cutting-edge solutions our partners and customers rely on, ensuring critical communications in the most challenging environments.”
John James, Managing Partner of BOKA Group, the lead investor, said, “Innovations in communication technologies within industries like defence and aerospace do more than just transmit information more efficiently; they are crucial for mission success, enhancing operational effectiveness, and ultimately safeguarding lives through seamless connectivity.
“ALL.SPACE has consistently demonstrated its leadership in this sector, with the potential to transform global networks. Our investment underscores our confidence in their vision to redefine global communication and our confidence in their leadership to bring cutting-edge solutions to the forefront of the market.”
01 Oct 24. Impulse Space Secures $150m In Series B Funding To Support Ongoing Company Momentum. The round, led by Founders Fund, is the latest in a series of recent milestones that include Impulse’s selection for STRATFI and SBIR awards by SpaceWERX, the unveiling of a new GEO Rideshare Program, and the successful completion of the LEO Express-1 mission. Impulse Space, a leader in the development of in-space transportation services, today announced a $150m Series B funding round, led by Founders Fund. The round also included participation from other returning investors like Lux Capital and Spring Tide, as well as attracting new investors, such as DCVC. Other participants in the funding round included Airbus Ventures, Alumni Ventures, Balerion Space Ventures, RTX Ventures, Tamarack Global, 137 Ventures, Elysium, First Principles Group, Island Green, Overmatch, and Trousdale Ventures. The funding, which follows a series of recent milestone moments for the company, will be used to further grow the Impulse team and to support the ongoing production of both the Helios and Mira vehicles. The Series B round brings Impulse’s total funding to date to $225m.
“The satellite market is demanding enhanced maneuverability and rapid on-orbit responsiveness, which requires Impulse Space’s powerful, high delta-v vehicles,” said Scott Nolan, Partner at Founders Fund. “Tom has built a team with deep expertise innovating on mission-critical technologies, positioning the company to reliably deliver while driving the future of in-space transportation.”
The Series B funding continues the strong momentum for Impulse. This year alone, the company has been selected by SpaceWERX for a Strategic Funding Increase (STRATFI) award, two Small Business Innovation Research Program (SBIR) awards, announced a new GEO Rideshare Program, and completed the record-setting LEO Express-1 mission. The team is currently preparing for the upcoming launch of the LEO Express-2 mission, which will see a Mira vehicle support deployment and hosting services for multiple customers.
Operations are based out of Impulse’s 60,000-square-foot headquarters in Redondo Beach, Calif., where the company handles the majority of vehicle design, manufacturing, testing, and assembly under one roof. Impulse also operates facilities at the Mojave Air and Space Port, where additional testing work is underway for the Helios Deneb engine.
Impulse Space’s vehicles, Helios and Mira, stand out in two key ways from other market entrants. Each features predominantly in-house components, from thrusters and valves to star trackers and avionics. This vertically-integrated approach enables the team to advance innovation and improve reliability while staying on time and on budget. Second, both vehicles offer a high delta-v capability due to their chemical propulsion systems, which also feature nontoxic propellants, simplifying mission operations. Helios, a high-performance kick stage, uses liquid oxygen and liquid methane to transport more than 5 tons of payload from LEO to GEO in less than 24 hours. Mira, designed for payload hosting, deployment, and movement within orbits, uses a storable nitrous oxide and ethane bipropellant to offer up to 900 m/s of delta-v for a 100 kg payload. Together, the two vehicles address a critical need in the in-space transportation infrastructure by supporting rapid maneuverability within and between orbits.
“This funding is not only a testament to our team’s achievements over the past year but also a validation of our vision for the in-space transportation industry,” said Tom Mueller, founder and CEO of Impulse Space. “We’re proud to have so many partners who understand and support the importance of our work to accelerate humanity’s future in space by unlocking reliable, affordable, and efficient access to any orbit.”
With this latest funding, Impulse will continue growing its team of more than 140 employees and working to execute against an upcoming roadmap that includes the first mission for the upgraded Mira design in late 2025 and the inaugural launch of Helios in 2026.
About Impulse Space
Impulse Space, the in-space transportation company founded by Tom Mueller, is opening access beyond Low Earth Orbit (LEO) with its fleet of in-space transportation vehicles. The flight-proven Mira vehicle uses a nontoxic, high-impulse chemical propulsion system to offer orbital transport, constellation deployment, and precision reentry services to customers from LEO to GEO. The high-energy Helios vehicle unlocks orbits beyond LEO with its powerful Deneb engine, dropping off payloads in MEO, GEO, heliocentric, lunar, and other planetary orbits. Led by a team that delivered the most reliable rockets in history, Impulse provides economical and efficient in-space transportation by reliably and rapidly getting customers where they want to go. For more information, visit www.impulsespace.com. (Source: BUSINESS WIRE)
01 Oct 24. CACI Acquires Applied Insight. CACI International Inc (NYSE: CACI) announced today that it has acquired Applied Insight, a Northern Virginia-based portfolio company of Acacia Group, in an all-cash transaction. In alignment with CACI’s mission to deliver distinctive expertise and differentiated technology to meet its customers’ greatest national security challenges, Applied Insight delivers proven cloud migration, adoption, and transformation capabilities, coupled with intimate customer relationships across the Department of Defense (DoD) and Intelligence Communities (IC).
“With the close of this acquisition, CACI further establishes its unparalleled reputation for delivering expertise and technology to modernize our customers’ enterprise IT infrastructure,” said John Mengucci, CACI President and Chief Executive Officer. “The combined business of CACI and Applied Insight will enhance enterprise-wide cloud, cyber, and user productivity for secure networks in the IC, thus accelerating decision-making and optimizing mission outcomes for analysts and warfighters around the globe.”
Both CACI and Applied Insight share strengths in their deep technical expertise, empirical customer knowledge, and employee-centric cultures rooted in national security.
“The cultural fit of our two companies will enable our mutual success going forward,” said Mengucci. “I am pleased to welcome the talented Applied Insight employees to our team and am confident they will thrive at CACI.” (Source: BUSINESS WIRE)
01 Oct 24. Element Announces Strategic Acquisition of ISS Inspection Services. Element Materials Technology (Element), a global leader in testing, inspection, and certification (TIC) services for highly regulated end markets, has acquired ISS Inspection Services, a leading provider of non-destructive testing (NDT), inspection, and other special process services supporting the aerospace, space, energy and defense industries.
Previously part of Industrial Service Solutions, ISS Inspection Services is comprised of four customer-facing brands: NIC Inspection Services, PTI Industries (both accredited by the Federal Aviation Administration), PRO Inspection Services and CTS Inspection Services. Together, these entities serve almost 1,000 customers operating in the aerospace, space, defense, and energy industries and provide advanced capabilities in NDT, inspection, and special process services such as precision cleaning and coatings. The company’s team of around 300 highly skilled employees work from one of its five facilities in the U.S., or directly at customers’ sites.
Through this acquisition, Element will be able to offer its customers more touch points in the fast-growing NDT ecosystem, particularly in the after-market (AM) and maintenance, repair, and overhaul (MRO) subsectors, as well as new services through ISS Inspection Services’ special process services offering.
Jo Wetz, CEO of Element, commented on the acquisition: “ISS Inspection Services is a fantastic business with a loyal customer base. This acquisition is fully aligned with our growth strategy of increasing scale, reach, and expertise in targeted end markets such as aerospace, energy and defense where our customers see us as their partner of choice.”
Bob Vigne, CEO of ISS Inspection Services, added: “By joining forces with Element, we can tap into huge opportunities for our employees and customers alike. We wholeheartedly believe that by combining our strengths, we are well positioned to deliver an unparalleled range of safety-critical services to our customers.”
The acquisition of ISS Inspection Services builds on other recent investments by Element in the U.S. including its acquisition of NTS in September 2022.
Wetz added: “We continue to see significant growth opportunities in the U.S. which now represents over 60% of our global operations.”
Element was advised on the deal by Faegre Drinker Biddle & Reath LLP, A&O Shearman, and Skadden; and Industrial Services Solutions was advised by Houlihan Lokey, Alantra, and Vedder Price.
About Element
The Element Materials Technology Group is one of the world’s leading global providers of testing, inspection, and certification services for a diverse range of products, materials, and technologies in advanced industrial supply chains where failure in use is not an option. Headquartered in London, UK, Element’s c.9,000 scientists, engineers, and technologists, work across a global network of over 270+ laboratories, support customers from early R&D, through complex regulatory approvals, and into production ensuring their products are safe and sustainable and achieve market access.
For more information about Element, please visit our website, connect with us on LinkedIn, Twitter, Instagram and subscribe to our YouTube channel.
About ISS Inspection Services
ISS Inspection Services is comprised of four entities – NIC Inspection Services, PTI Industries, PRO Inspection Services and CTS Inspection Services. Together, these companies offer three lines of business: non-destructible testing (NDT); Inspection; and Special Processes which provides ancillary services such as precision cleaning, adhesive bonding, and coatings.
With almost 1,000 customers in the fast-growing aerospace, space, defense, and nuclear power generation industries in the U.S., ISS Inspection Services employs a team of ~300 who work in one of the company’s five laboratories in Florida, Texas and Connecticut, or directly at customers’ sites across the country.
Headed up by President and CEO, Bob Vigne, the company’s roots date back to the 1970’s since which time it has expanded rapidly through both organic and inorganic growth. (Source: BUSINESS WIRE)
01 Oct 24. Salient Motion Raises $12m to Scale Motion Control Business.
- Hardtech Startup Aims to Cut Down Development and Certification Time for Critical Aerospace and Defense Components
- The Company will Tackle Aerospace Industry Procurement Challenges with Proprietary Modular Design System and Streamlined Certification Process
- Salient Motion is Reimagining the OEM-Supplier Relationship in a $350bn Industry
- Building Modular Technology To Accelerate Military & Industrial Readiness With Rapid Deployment of Critical Components
Salient Motion, an aerospace and defense component supplier, today announced it has closed $12m in total funding, preseed and seed rounds, to transform the design and manufacturing of critical motion control components. The funding was led by Cantos Ventures, with participation from Andreessen Horowitz, AE Ventures, Hummingbird Ventures, and BoxGroup.
Founded in 2022, Salient Motion is reimagining motion control design, focusing on building and certifying modular actuation systems for highly regulated industries such as aerospace, military defense, and advanced manufacturing. The team was built with an initial focus on building flight certifiable systems for commercial aviation that can be reused across multiple component categories. Since the initial inception, Salient Motion has expanded its product portfolio to serve a multitude of industries including military, aviation, and the industrial sector. This expansion leverages the company’s core expertise in stringent regulatory environments to address similar challenges in adjacent markets. Underpinning every Salient Motion product is a proprietary motion control library driving electrical efficiency and cost improvements across a wide variety of electromechanical components.
Electromechanical systems are essential to aircraft operations, heavy industrial equipment, and military programs. Salient Motion’s innovative technology aims to address longstanding challenges across these industries, driven by stringent, but often necessary regulatory processes, that result in high costs, supply chain vulnerabilities, and lengthy certification timelines.
“The aerospace and defense industrial base has been plagued by single-source components designed and certified decades ago,” said Vishaal Mali, CEO of Salient Motion. “Suppliers have shifted into a margin first mentality, driving growth with price increases and anti competitive tactics instead of innovative engineering. Our approach isn’t just recreating parts – it’s about fundamentally rethinking the OEM-supplier relationship. This funding accelerates our mission, bringing much-needed innovation to the aerospace and defense supply chain.”
Salient Motion’s core innovation is its modular motion control platform, from software to hardware. The company is leveraging best-in-class silicon to push complexity in airborne systems from hardware to software. Certifying this software to FAA standards across multiple functions and Design Assurance Levels (DALs) creates a library of certifiable “building blocks.” Salient Motion customers – OEMs and defense Primes – can leverage these building blocks to dramatically reduce development time and cost for new components.
Key features of the Motion Control Platform include:
- Modular design architecture enabling significant reusability across different components and DALs.
- Increased reliance on software for functionality traditionally managed by hardware.
- A streamlined approach to FAA certification, with the goal of reducing approval times by 50%.
- Enhanced reliability and maintainability, extending component lifespans and decreasing time and cost dedicated to maintenance.
- Focus on partnership, not purchase orders, with OEMs. Customers benefit from zero NRE and aftermarket revenue shares.
Salient Motion’s journey began in a two-car garage in Irvine, California where a team of aerospace engineers, frustrated by their experiences working with legacy suppliers, decided to take a deep dive into understanding why so many critical components were single-sourced by incumbents who were slow to update and improve products.
The $350bn aerospace component market faces some of the highest barriers for entry, with decade-long certification processes and entrenched incumbents discouraging competition. With over 3 m discrete components in modern aircraft, many single-sourced, Salient Motion aims to disrupt this landscape.
The most recent funding will be used to scale Salient Motion’s engineering team, accelerate product development, and expand its manufacturing footprint in Southern California with a new lease in Torrance. The funding allows the company to expand the executive and engineering team with key hires to continue overall momentum. Salient Motion is currently pursuing its first FAA certified component, with a portion of the funding earmarked for development and certification of the next components.
Salient Motion has a robust customer base and has already secured a partnership with a leading commercial aircraft manufacturer, marking a significant milestone in the company’s growth and validation of its innovative approach.
“Salient Motion represents exactly the kind of transformative thinking we look for in our investments,” said Ian Rountree, General Partner at Cantos Ventures. “The company’s approach to modular, software-driven component development has the potential to reshape Aerospace and Defense, driving down costs and improving reliability across the board. We’re excited to support their growth and vision for the future of aircraft manufacturing.”
Salient Motion’s target market includes major aircraft manufacturers, Tier 1 suppliers and systems integrators across commercial aviation, unmanned aerial vehicles and maritime applications. (Source: BUSINESS WIRE)
01 Oct 24. Patria announced on 13 June, 2024 about the acquisition of a leading manufacturer of drone systems Nordic Drones Oy and on 4 September, 2024 about the acquisition of an open source data collection product and business related to its cyber business area from WithSecure. The completion of both acquisitions required the approval of the Finnish Ministry of Employment and the Economy (‘TEM’) and the authority process has now been completed. The acquisitions will not affect customer commitments, employment relationships or other commitments made by the company or business area. The businesses will be transferred to Patria on 1 October, 2024.
30 Sept 24. Mobix Labs Submits All Cash Offer to Acquire EMCORE Corporation.
Synergistic Acquisition would enhance Mobix Labs’ competitive strength in aerospace and defense sector
Scales operations and cash flow
Mobix Labs, Inc. (Nasdaq: MOBX) (“Mobix Labs”, “Mobix” or the “Company”), a leader in advanced wireless and connectivity solutions for the military and defense sector, today announced it has submitted a compelling non-binding proposal to the Board of Directors of EMCORE Corporation (Nasdaq: EMKR) (“Emcore”), the world’s largest independent provider of inertial navigation solutions to the aerospace and defense industry, to acquire all of EMCORE’s outstanding shares for $3.80 per share in cash.
Mobix Labs’ all cash proposed offer to the EMCORE Board represents a more than 200% premium over EMCORE’s current stock price as of September 27, 2024. Based upon its 2022 and 2023 10-K filings, EMCORE’s revenue in its fiscal year ending 9/30/23 grew 115% to $97m from the prior year.
EMCORE is a leading supplier of inertial sensors and systems for land, sea, air, and space applications in the aerospace and defense market. “We believe this proposal presents an exceptional opportunity for EMCORE shareholders to realize immediate and significant value for their investment,” said Fabian Battaglia, CEO of Mobix Labs. “Our recent strategic acquisitions, including EMI Solutions and RaGE Systems, have significantly strengthened our position in the military, defense, and high-reliability electronics sector,” Battaglia added. “We believe integrating EMCORE’s products would further accelerate our growth and innovation in critical markets.”
Mobix Labs is led by seasoned industry veterans, including Board of Directors members James Peterson, former CEO and Chairman of Microsemi, and David Aldrich, former CEO and Chairman of Skyworks Solutions.
Transaction Details
Mobix Labs’ proposal has the support of its Board of Directors. Mobix Labs’ all cash offer is subject to the approval of the EMCORE Board of Directors, the execution of a definitive agreement between Mobix Labs and EMCORE, and any shareholder approval that may be required by law.
About Mobix Labs, Inc.
At Mobix Labs, we’re committed to transforming connectivity by partnering closely with our customers to deliver advanced semiconductor and wireless systems solutions tailored to their needs. Based in Irvine, California, we specialize in four key areas; EMI Interconnect Solutions for secure aerospace and GPS systems, Active Optical Cables (AOC) for high-speed AI datacenter interconnects, 5G IC Solutions for mmWave communications, and Wireless Systems Solutions, including joint design and manufacturing services for RF technologies, serving customers in 5G, radar, and imaging sensors. Through deep collaboration and innovation, we’re shaping the future of connectivity. Visit mobixlabs.com and follow us on LinkedIn.
Mobix Labs, the logo, and SMART™ Edge Device are among the trademarks of Mobix Labs. Other trademarks are the property of their respective owners. (Source: BUSINESS WIRE)
30 Sept 24. Bluestone Investment Partners, a private equity firm focused on the defense and government technology sector, announced the successful acquisition of Tucson Embedded Systems, LLC (TES) by its portfolio company, Precise Systems. This strategic acquisition represents a key step in expanding Precise Systems’ capabilities in advanced engineering, particularly within Model Based Systems Engineering (MBSE), and underscores Bluestone’s ongoing commitment to fostering growth and innovation within its portfolio.
TES, based in Tucson, Arizona, is renowned for its expertise in Model-based Modular Open Systems Approach (MMOSA™), Future Airborne Capability Environment (FACE®), and Sensor Open Systems Architecture (SOSA). Its proprietary software, AWESUM® (AirWorthy Engineering Systems Unified Modeling), offers an end-to-end systems development lifecycle tool suite, enabling rapid design, verification, and certification of embedded mission-critical systems. TES’s innovative solutions for customers such as NAVAIR and PEO Aviation align with Precise Systems’ mission to deliver advanced, mission-critical technologies.
“We are excited to welcome TES employees into Precise as our third add-on acquisition in the last year,” said Scott Pfister, Chief Executive Officer and President of Precise Systems. “TES brings significant capability in the advanced engineering domain and specifically within open architecture software development standards. These capabilities are increasingly in demand across Precise Systems’ existing client base and the overall sector. This acquisition deepens our expertise in this area, and we look forward to bringing these solutions and expertise to current and new customers.”
Dennis Kenman, co-founder of TES, commented: “This partnership with Precise not only enables us to continue supporting our existing customers but also expands our ability to bring our expertise to a broader range of commercial and Department of Defense clients, on a larger scale.”
Mike Ivey, Partner at Bluestone Investment Partners, added: “Our acquisition strategy at Bluestone continues to complement and accelerate the growth of our portfolio companies. TES brings valuable expertise that will support Precise Systems’ continued expansion through both organic growth and strategic acquisitions.”
The collaboration between Precise Systems and TES reinforces Bluestone’s strategic vision of providing value-added capital and support to portfolio companies. Bluestone and Precise Systems remain actively engaged in seeking additional add-on acquisition opportunities, particularly for companies specializing in next-generation engineering solutions for Department of Defense and national security customers.
For further information, please reach out to Zack Hester, Director of M&A Strategy and Deal Generation at Bluestone (contact information below).
30 Sept 24. Kromek Group plc (“Kromek” or the “Group”) Update on Full Year Results. Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, gives notice that, further to the Group’s trading update of 29 May 2024 (the “Trading Update”) in which it stated it expected to release its full year results in September 2024, the Group now expects to announce its final results for the year ended 30 April 2024 during the second half of October.
The Group is experiencing increasing commercial and strategic momentum and continues to pursue further initiatives across the business. As noted in the Trading Update, Kromek expects to report positive EBITDA for FY 2024, ahead of market expectations. This reflects an anticipated improvement in gross margin due to the product mix sold combined with the Group exerting continued tight cost control whilst driving operational efficiencies, particularly within its advanced imaging manufacturing process.
Equity Development note: Encouraging H2 supports a positive outlook
For the year to 30 April 2023 Kromek reported revenue of £17.3m, +44%YoY, and an EBITDA (adj.) loss of £1.0m. The salient feature was the reversal of the H1 (adj.) EBITDA loss of £2.61m to a H2 (adj.) EBITDA profit of £1.63m. Gross profitability also improved, from a 46.8% margin in FY22 to 51.6%, again with a strong H2 improvement at a 59.3% margin. The year-end cash position was £1.1m then post year-end the Group raised £8.0m to fund growth prospects.
We estimate FY23 revenue in the Advanced Imaging division of £7.6m +65%YoY, and in the CBRN segment, £7.4m, +38%YoY. Importantly the balance of revenue generation continued to shift towards Products, comprising 85% of total (FY22: 82%), rather than R&D-related projects.
On 18 April Kromek announced a major 7 year agreement with a Tier 1 OEM to develop and incorporate its CZT-based detectors in advanced medical imaging scanners. We base our outlook on the assumption that the Tier 1 OEM agreement addresses the CT scanner market estimated to be worth c.US$10bn by 20291; and see Kromek potentially adding over £100m to revenue by 2029.
We make no changes to our FY24 outlook, and introduce FY25 forecasts: with estimated revenue of £25.1m and EBITDA of £2.6m indicative of an EV/EBITDA multiple 6x
Our Fair Value is also maintained at 26p/share.
Equity est. for this year being £21m
Yr to 30 Apr (£’000) 2020 2021 2022 2023 2024E 2025E
25 Sept 24. EchoStar fails to find extra cash. EchoStar, the Charlie Ergen-backed business that owns the Dish US pay-TV operator, says that negotiations which have taken place over the past weeks with certain debt-holders and which would have led to a financial reconstruction have failed to reach agreement.
The negotiations were primarily with members of a group represented by Milbank. Despite this setback, EchoStar says it remains active in discussions with various parties to explore possible financing transactions. The company is seeking new financial avenues to secure the financial stability and enable future growth
However, there is some good news for the business. The FCC on September 23rd approved EchoStar’s application for more time to extend its 5G ‘Boost Mobile’ network. The extension means that Boost Mobile has until the end of the year to cover 80 per cent of the US population with its 5G service.
According to EchoStar, the updated framework will allow the company to “optimize and enhance its coast-to-coast buildout of the world’s first cloud-native Open RAN 5G Boost Mobile network”.
Additionally, the company said that smaller wireless carriers and Indian Tribal nations will also be able to lease EchoStar spectrum licenses in extension areas where the company has not yet deployed.
EchoStar’s rumored merger plans with rival DirecTV have yet to materialize, yet its share price has remained solid. On September 24th its shares closed at $25.33, up 7.7 per cent and a 43.4 per cent rise over the past year. (Source: Satnews)
17 Sept 24. Merger: iKO Media Group + STN STORITVE (STN).
iKO Media Group (iKOMG) and STN STORITVE (STN) have merged — they will operate under the banner “Strength in Fusion, Excellence in Broadcasting Solutions.”
The merger fuses iKOMG’s tailored media solutions with STN’s advanced, satellite teleport capabilities, expanding the range of services offered to both companies’ valued clients. This union assures an extended suite of solutions, encompassing satellite broadcasting, cloud services, playout management, disaster recovery, OTT platforms, fiber, IP delivery, sports and events and new age solutions for channel monitoring, streaming to social media and monetization. Through seamless execution and advanced technology, the new group is committed to delivering excellence that exceeds expectations.
The iKOMG-STN merger sets a new precedent in broadcasting solutions which remains dedicated to customer success. Clients can expect enhanced services, innovative offerings, and a steadfast assurance to deliver solutions that empower growth. Operational excellence will remain the merged group’s priority with the 24/7 Network Operations Centers (NOCs) situated in Dob, Slovenia and Rome, Italy ensuring uninterrupted content delivery across IP, Fiber and satellite connections; the dual locations and will provide network resilience, back-up, diverse routing and redundancy. The merged company is committed to partner privacy, confidentiality and safeguarding data.
“We assure our existing customers that the exceptional service you have come to rely on will not only continue but be enhanced. We value their trust and look forward to extending the same commitment to new customers. This merger enables us to personally tailor solutions that best suit networks and content owners’ evolving needs while maintaining the highest standards of professionalism.” — Shmulik Koren and Shlomi Izkovitz, Co-Founders and Co-Owners, iKOMG
“Following several years of successful and close collaboration between both companies, this merger was the next logical and key step to combine our strengths, resources, and shared vision. We are now even better equipped to build on our trusted quality services and deliver next-generation solutions, that will elevate our customers’ business today and beyond. Together, we are stronger, more agile, and poised to lead the company and our clients into a prosperous future.” — Mitja Lovsin, Co-founder of STN and Co-Owner of iKOMG
“This merger creates a powerful new client centric organization that is dedicated to market leading solutions for channels, broadcasters and content owners across the sector. It combines the strengths of two highly successful companies and brings about the marriage of innovation and bespoke, tailored services with strength of infrastructure and technology.” — David Treadway, Chairman of the merged group. (Source: Satnews)
27 Sept 24. Amentum Completes Transformational Combination with Jacobs’ Critical Mission Solutions and Cyber and Intelligence Units. Amentum (the “Company”), today announced the completion of its merger with Jacobs Solutions Inc.’s (“Jacobs”) Critical Mission Solutions and Cyber and Intelligence businesses. The combination creates a global leader in advanced engineering and innovative technology solutions, well positioned to address its customers’ most significant and complex challenges. Amentum will begin regular-way trading on the New York Stock Exchange (“NYSE”) on Monday, September 30, under the ticker symbol “AMTM.” The executive team of the Company is also scheduled to ring the Opening Bell at NYSE the following day, Tuesday, October 1.
Headquartered in Chantilly, Virginia, Amentum is a leading global engineering and technology services business serving the U.S. Government and its allied partners. The Company provides full lifecycle, advanced engineering and technology solutions across five key markets: environment, space, intelligence, defense and civilian. Amentum has extensive scale and global reach, supported by a highly skilled and diverse workforce of more than 53,000 people in approximately 80 countries.
“The completion of this transformational combination creates a global leader that advances the future, with the trusted track record of superior performance, outstanding engineering expertise, and leading-edge technologies required to meet our customers’ most significant challenges,” said Amentum CEO John Heller. “After a century of success delivering trusted solutions to our customers, Amentum enters the public markets well-positioned for long-term growth, with a healthy financial profile, strong balance sheet, and robust cash generation. This is a milestone day for our business, and our employees are excited about the future and to continue our success delivering value for all our stakeholders as a public company.”
Amentum is strategically positioned to serve a $320bn total addressable market and will look to accelerate its growth in high-margin, technology-enabled segments. The Company will execute against an industry-leading $47bn backlog (as of fiscal year 2023), providing excellent visibility into profitable revenue growth, and expects to generate an estimated $14bn in revenue in fiscal year 2025.
“With a legacy of over a century, Amentum has built a strong foundation of trust as a longstanding partner of choice to the U.S. Government and its allied partners around the world,” said Steve Demetriou, Executive Chair of Amentum. “We are thrilled to bring together two deeply experienced, skilled and complementary teams with shared cultures of collaboration and innovation to drive growth in a highly attractive industry. I look forward to working with John and the Board to shepherd the next phase of Amentum’s journey.”
The new executive leadership team will be led by John Heller, who will serve as Chief Executive Officer and on the Company’s Board. Dr. Steve Arnette will serve as Chief Operating Officer, Travis Johnson as Chief Financial Officer and Jill Bruning as Chief Technology Officer of Amentum. Steve Demetriou will serve as Executive Chair of the Company’s Board. The Company has also appointed a highly qualified and diverse board of directors, who bring significant public company leadership and government sector experience, as well as extensive operational, financial and capital markets experience.
Upon the closing of the transaction, Jacobs’ shareholders will own 51.0% and Jacobs will own 7.5% of the Company’s common shares. An additional 4.5% of the Company’s common shares (the “contingent consideration”) will be placed in escrow and released in the future depending on the achievement of certain fiscal year 2024 operating profit targets by Jacobs’ Critical Mission Solutions and Cyber & Intelligence government services businesses. To the extent Jacobs becomes entitled to contingent consideration, the first 0.5% of the outstanding and issued shares of Amentum will be released from escrow and delivered to Jacobs. Any further contingent consideration to which Jacobs may become entitled will be distributed on a pro rata basis to Jacobs’ shareholders as of a record date to be determined in the future. Any shares of contingent consideration which Jacobs does not become entitled to receive will be released from escrow and delivered to the former equity holder of Amentum.
Advisors
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC served as financial advisors and Cravath, Swaine & Moore LLP and Arnold & Porter Kaye Scholer LLP served as legal advisors to Amentum. Centerview Partners LLC and Perella Weinberg Partners LP served as financial advisors and Wachtell, Lipton, Rosen & Katz served as legal advisor to Jacobs.
(Source: BUSINESS WIRE)
27 Sept 24. Shareholders to be wiped out as Titanic shipbuilder sinks into administration. Harland & Wolff has confirmed that shareholders in the troubled Titanic shipbuilder will be wiped out after bosses formally appointed administrators.
The London-listed company, which suspended trading of its shares at the start of July, said on Friday that investors should not expect “any returns” at the end of a review of the business.
It came as Gavin Park and Matt Cowlishaw, of Teneo, officially took over as joint administrators of the group, Harland & Wolff Plc.
The company had announced last week that it was expecting to appoint them imminently. At that point shareholders had also been warned that there was “no return likely” based on a review of the business by advisers at Rothschild.
Subsidiaries for each of Harland’s four yards – in Belfast; Appledore, Devon; Methil, Fife; and Arnish on the Isle of Lewis – have not been placed into administration and continue to trade.
When shares in the holding company were suspended in July, they were worth 8.4p each valuing the business at £14.5m. That compares to a share price of around 50p five years earlier.
The shareholder wipe-out has triggered anger, with investors last week questioning whether the move to call in administrators was premature.
In a question and answer session with Russell Downs, a restructuring expert who was parachuted in following the departure of chief executive John Wood in July, one shareholder asked: “As directors, you have a fiduciary duty to act in the best interests of the company.
“Bearing this in mind, why did you not wait for Rothschild to complete their strategic review before moving towards administration?”
Mr Downs replied: “We thought long and hard about the decision we had to take and, ultimately, it became the inevitable conclusion that, given the company’s insolvency on both a balance sheet and a cash flow basis, it was the right thing to do.
“Whilst that brings about the end, in all likelihood, of the company’s trading shares, it does not preclude the fact that shareholders still own the company and the administrator, in due course, will provide a full account of the value realised and how that is ultimately attributed.
“For my part, we tried. We kept the business going as long as we can [sic].”
Later when asked if investors may benefit from the potential sale of the company’s yards in future, he said: “As and when the underlying businesses are sold, then value will flow through the group in accordance with its relevant priorities – dealing with the secured creditor, dealing with any other creditors, and ultimately, potentially arriving up at the Plc entity.
“We will have to wait and see. It will fall to the administrators to give you an answer to that question in due course.”
He added that he continued to believe “that holding the group together is the way to drive the best value for all stakeholders”, rather than selling off individual yards.
Last week the company also confirmed it had begun an investigation into alleged misuse of customer payments worth more than £25m under former boss Mr Wood.
The former chief executive has dismissed the allegations as “ridiculous”.
Mr Downs told shareholders he could not comment on the investigation, which is expected to be continued by administrators.
Harland’s most valuable remaining asset is arguably its share of a £1.6bn contract to build three support ships for the Royal Navy.
Harland was recently awarded a £1.6bn contract to build naval support ships in cooperation with Spanish shipbuilder Navantia
Large chunks of the ships were due to be fabricated at Appledore, with the rest of the work done by fellow contractor Navantia, the Spanish state-owned shipbuilder, in Cadiz.
The vessels would have then been assembled at Harland’s historic shipyard in Belfast.
However, the company’s financial troubles have plunged the project into crisis.
In recent weeks, bosses at Harland – assisted by Rothschild – have initiated talks with potential buyers who could take the business on, with Navantia emerging as the frontrunner. (Source: Daily Telegraph)
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