Genstar Capital announced that it has acquired Infinite RF Holdings Inc. from Windjammer Capital Investors. Based in Irvine, California, Infinite RF is a supplier of engineering-grade radio frequency and microwave connectors, adapters, custom manufactured cable assemblies, and active RF components. The company serves clients in markets including military/aerospace, industrial, telecommunications, and electronics. Deal terms were not disclosed.
PC Connection Inc. announced that it has acquired Softsmart Inc. Based in Philadelphia and employing over 200 employees, Softsmart is a VAR that serves business, government, educational and healthcare organizations. The company generated approximately $200 million of revenue in 2015. Deal terms were not disclosed.
TransDigm Group Inc. announced that it has agreed to acquired Data Device Corp. from Behrman Capital for $1 billion in cash. With over 650 employees worldwide, DDC supplies databus and power supply products to military and commercial aerospace customers. Platforms that utilize DDC products include the JSF, F-18, Eurofighter, C-130, F-15, and Apache. The company is projecting 2016 revenues of over $200 million which puts the forward multiple at a rich 5.0x. The deal is expected to close at the end of fiscal year 2016.
Federal Data Systems announced that it has purchased two counterintelligence and intelligence business units from Intelligent Decisions focused on insider threat and critical infrastructure support services for commercial and government clients. Deal terms were not disclosed.
Along with the acquisition, FedData also made some key leadership changes by promoting Daniel Batelka to head its defense practice and Daniel Gilliam to become the company’s intelligence practice lead. FedData also hired Lonny Anderson, a 14-year NSA veteran to head the company’s counterintelligence activities.
KBR Inc. announced that it has agreed to acquire Wyle Inc., a provider of specialized engineering, professional, scientific and technical services to the US government. With over 3,800 employees, Wyle has domain expertise in systems and sustainment engineering, program and acquisition management, life science research, space medical operations, IT and testing and evaluation of aircraft, systems, and networks. The business generated 2015 revenue and adjusted EBITDA of $836 million and $67 million respectively, and currently has approximately $440 million of funded backlog and $1.1 billion of unfunded backlog.
The purchase price is $570 million after adjusting for approximately $30 million of tax benefits, resulting in enterprise value multiples of 0.7x (2015 revenue) and 8.5x (2015 EBITDA). The deal is expected to close in the third quarter of 2016.
Private equity firm AE Industrial Partners LLC announced that it has acquired AC&A LLC, a manufacturer of composite and metallic parts and tooling for customers in the aerospace and defense, space, and automotive markets. This will be AE Industrial Partners’ third acquisition in the last year. Deal terms were not disclosed.
Synopsys Inc. announced that it has acquired Simpleware Ltd., a provider of software products that convert 3D scan data into computer models for engineering design and simulation. Simpleware's products are used by clients in the life sciences, consumer products, aerospace, automotive, defense, oil and gas industries. Deal terms were not disclosed.
National Testing Systems Inc. (NTS) announced that it has acquired Chesapeake Testing Services. Based in Belcamp, Maryland, Chesapeake is an accredited testing provider for ballistic and armor protection systems, as well as environmental conditioning, mechanical testing, forced-entry testing, and non-destructive X-ray and CT testing. NTS is a portfolio company of Aurora Capital Group. Deal terms were not disclosed.
KLX Inc. announced that it has acquired Herndon Aerospace & Defense LLC from private equity firm HCI Equity Partners. Herndon is a supply chain management and consumables hardware distributor serving military depot aftermarket customers and commercial aerospace aftermarkets customers. Herndon generated 2015 revenues and adjusted EBITDA of$132.5 million and $20.3 million respectively. The purchase price was $210 million payable in cash. Harris Williams & Co. advised Herndon on the sale.
SolAero Technologies Corp. announced that it has acquired San Diego, California-based Vanguard Space Technologies Inc. from Enlightenment Capital. Founded in 1994, Vanguard provides satellite structural components and assemblies for commercial, defense, and civil satellites to customers worldwide. Vanguard will operate under the Alliance Spacesystems brand name. Deal terms were not disclosed.
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