Thales announced that it has completed the acquisition of Vormetric in a deal worth €375 million. Based in San Jose, California, Vormetric is a provider of data protection solutions in physical, virtual, and cloud infrastructures. The company has annual revenues of approximately $75 million which puts the enterprise value/revenue multiple at 5.7 times.
IDEX Corp. announced that it has completed its acquisition of Akron Brass from Premier Farnell plc. Akron Brass provides a range of engineered life-safety products for the safety and emergency response markets. The enterprise value of the all-cash transaction is $224.2 million, representing a 1.9x CY15 revenue multiple and 8.8x CY15 EBITDA multiple. Lazard & Co. and Barclays Bank advised Premier Farnell on the transaction.
Enlightenment Capital announced that it has made an investment in Aurora Flight Sciences, a provider of unmanned aircraft systems (UAS) and technologies for military and commercial clients. Aurora will use the investment to expand the company’s development and manufacturing scale. Some recent wins for Aurora include an $89 million DARPA contract to build a demo aircraft for the agency’s VOTL x-plane and contracts with NASA and the FAA to develop an ultra-efficient future commercial aircraft design know as D8.
Deal terms were not disclosed. G2 Securities advised Aurora on the transaction.
Platinum Equity Holdings announced that it has completed its acquisition of PAE from fellow private equity firm Lindsay Goldberg & Co. Based in Arlington, Virginia, PAE provides mission support and logistics services to government clients across the globe. Deal terms were not disclosed.
Haskell announced that it has entered into an agreement to acquire the heavy construction business and select design assets from Leidos. Prior to its acquisition by Leidos in 2007 (actually SAIC at the time), the business was known as Benham and provided its services to various markets including oil & gas, chemicals, food and beverage manufacturing, consumer products manufacturing, federal government, and transportation. Leidos projects that the business will generate approximately $175 million of revenue in calendar 2016. The deal is expected to close in the second quarter of 2016.
During Safran's Capital Markets Day 2016 on March 14th, the company announced that it was in discussions with several potential acquirers regarding its Morpho Detection business and should be in exclusive negotiations shortly with a signing in the coming weeks. Safran is also performing a strategic review of the rest of the Morpho security and identity business. Morpho Detection, which was acquired from General Electric (81% stake in 2009 and the remaining stake in 2012), provides a range of explosive detection systems for airports.
Safran received an unsolicited bid for the business last October from an undisclosed competitor. So who could be in the mix for the business? The usual suspects would include OSI Systems, Smiths, and L-3. AS&E is a competitor but they're probably too small considering Morpho Detection's annual revenue of approximately $500 million Euros. Leidos with its VACIS and Reveal security products could be a player, although they're a bit busy at the moment with its Lockheed deal. I guess we'll just have to wait and see.
CTS Corporation announced that it has acquired CTG Advanced Materials LLC (CTG-AM) from Blue Wolf Capital Partners for $73 million. Formerly operated as H.C. Materials, CTG-AM is a designer and manufacturer of single crystal piezoelectric materials for OEM's in the medical and defense industries.
Tetra Tech Inc. announced that it has acquired INDUS Corp., a Vienna, Virginia-based IT firm focused on data analytics, geospatial analysis, secure infrastructure, and software applications for the US government. INDUS has more than 150 employees and various contract vehicles including GSA Alliant, CIO-SP3, and NETCENTS 2.
It appears that Tetra Tech acquired INDUS to augment its spatial and water information capabilities. According to Dan Batrack, Tetra Tech's Chairman and CEO: "With our combined expertise, we can assist customers in managing large data repositories and expand our smart water services, including analysis and real-time decision making in the water sector.”
Deal terms were not disclosed. The McLean Group LLC advised INDUS on the transaction.
Honeywell has thrown in the towel, at least for now, on its pursuit of United Technologies. In a strongly worded press release, Honeywell reiterated its previous position that the regulatory process would not have been a material obstacle to a transaction. In addition, Honeywell claims that they "were told by them [UTC] during the meeting that such a combination would be fabulous, they would take it very seriously, and they would get back to us with questions within a week in anticipation of their upcoming Board meeting."
We're pretty sure this won't be the last time these two companies discuss a potential combination.
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