MacDonald, Dettwiler and Associates Ltd. (MDA) announced that it has agreed to acquire DigitalGlobe Inc. for $35.00 in cash and stock. The deal values DigitalGlobe at an equity value of $2.4 billion or an enterprise value of $3.6 billion. With 2016 revenues of $725.4 million and adjusted EBITDA of $382.7M, the deal multiples are 5x revenue and 9.4x EBITDA.
DigitalGlobe is a provider of high-resolution Earth-imagery products and solutions which it provides using its own satellite constellation and third-party providers. The company recently acquired The Radiant Group which brought the company advanced geospatial expertise. Customers include defense, government and intelligence agencies as well as organizations in the oil and gas exploration, infrastructure management, and navigation technology markets.
BofA Merrill Lynch and RBC Capital Markets are serving as financial advisors to MDA. PJT Partners and Barclays are serving as financial advisors to DigitalGlobe.
STG Group Inc. announced that it has agreed to acquire Preferred Systems Solutions Inc. (PSS) in a deal worth $119 million. PSS is owned by CM Equity Partners. The acquisition, which is expected to closing during the first quarter of 2017, will be financed using a combination of debt and equity financing. PSS provides advanced computing, analytics, program and acquisition management, cyber and software solutions to over 25 government agencies including defense and Intelligence Community clients. STG is advised by Sagent Advisors.
BAE Systems Inc. announced that it has acquired IAP Research, a company focused on the development and production of electromagnetic launchers, power electronics, and advanced materials. According to the press release, the acquisition "enhances both IAP Research and BAE Systems’ capabilities for the Engineering and Manufacturing Development of the Electromagnetic Railgun (EMRG)". IAP Research has approximately 40 employees and has been a subcontractor to BAE for more than a decade. Deal terms were not disclosed.
LMI Aerospace Inc. announced that it has agreed to be acquired by Sonaca Group, an aersostructures firm based in Belgium, for approximately $190 million. Based on LMI's existing debt and projected 2016 financials, the deal multiples are approximately 1x revenue and 11x EBITDA. Headquartered in St. Louis, Missouri, LMI is a supplier of structural assemblies, kits, and components and is a provider of engineering services to various industries including the military aerospace markets. The deal is expected to close in mid-2017. Lazard is advising LMI while Credit Suisse is advising Sonaca.
TASER International announced that it has launched an artificial intelligence group called Axon AI through its acquisition of Dextro Inc. and the computer vision team from Fossil Group Inc. Dextro has developed a computer-vision and deep learning systems that makes videos discoverable and searchable in real time. The acquisition from Fossil Group includes the team of machine-vision researchers that were part of Fossil Group's acquisition of Misfit Inc. Both acquisitions bring TASER approximately 20 researchers and engineers which will provide new AI-powered capabilities for public safety. Deal terms for both deals were not disclosed.
Soaring Pine Capital announced that it has acquired ETI Tech Inc. Based in Dayton, Ohio, ETI provides flight hardware parts for military aircraft and ground equipment for various aircraft including the F-35, C-130, F-16, and C-5B. Deal terms were not disclosed.
Accenture announced that it has agreed to acquire the federal government services business of Endgame Inc., a provider of endpoint detection and response (EDR) cybersecurity software solutions. The federal services business provides government clients with services including cyber defense, hunt-as-a-service, red teaming and cyber operations. As part of the transaction, Accenture and Endgame have entered into an alliance where Accenture will resell Endgame's EDR platform. Deal terms were not disclosed.
It appears that Accenture is serious about bulking up its cybersecurity capabilities as this acquisition is one of several investments the company has made in cybersecurity over the past few months, including the acquisition of Defense Point Security LLC and its announcement today that it will acquire iDefense Security Intelligence Services from Verisign.
Salient CRGT Inc. announced that it has agreed to acquire Information Innovators (Triple-i), a Springfield, Virginia-based provider of healthcare IT services to the federal government. Triple-i provides healthcare IT services, enterprise IT solutions, cloud services, and agile development to customers including 11 out of the 15 cabinet-level federal departments. The deal is expected to close within the first quarter of 2017. Both companies are owned by private equity firms with CRGT backed by Bridge Growth Partners LLC and Frontenac Co., and Triple-i by DFW Capital Partners.
Deal terms were not disclosed. Salient CRGT was advised by RBC Capital Markets and Sagent Advisors while Triple-i was advised by KippsDeSanto & Co.
Enlightenment Capital announced that it has made an investment in Telos Corporation, a provider of cyber security solutions and services to government, military, intelligence, and commercial clients. Enlightenment Capital is a DC-based private equity firm focused in the aerospace, defense, and government sectors. Deal terms were not disclosed.
Red Hawk & Security LLC announced that it has acquired Integrated Systems of Florida (ISOF). Based in Tampa, Florida, ISOF is a systems integration company serving customers in healthcare, government, religious and educational institutions. Red Hawks is owned by Comvest Partners which acquired the business from United Technologies Corporation in 2012. Deal terms were not disclosed.
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