FLIR Systems Inc. announced that it has acquired Armasight Inc. in an all-cash deal worth $41 million. Based in San Francisco, California, Armasight is a provider of night vision, thermal, and daylight imaging products for hunters, law enforcement, and military customers. The company's solutions include rifle scopes, spotting scopes, binoculars, goggles, and illuminating tools. Revenue and profit figures weren't disclosed but FLIR expects the deal to be neutral to 2016 net earnings and accretive thereafter.
Arlington Capital Partners announced that it has acquired EOIR Technologies Inc. Based in Fredericksburg, Virginia, EOIR and its 400 employees provides cloud computing, big data analytics, advanced visualization, C4ISR, spectrum-related information dominance, smart sensing, training and simulation, and rapid prototyping solutions to the DoD and Intelligence Community. The company has prime positions on large contract vehicles with Army CERDEC ($995 million ceiling), Office of Naval Research ($800 million ceiling), and Army Research Lab ($250 million ceiling). Deal terms were not disclosed.
Spaceflight Industries announced that it has secured $18 million in Series B financing led by Mithril Capital management as part of a round that is expected to raise up to $25 million. The company, which provides satellite infrastructure, global communication networks, and rea-time imaging capabilities, has raised a total of $53.5 million from investors including RRE Venture Capital, Vulcan Capital, and Razor’s Edge Ventures. Spaceflight is the first launch services provider to be awarded a GSA Schedule contract that enables federal agencies to secure small satellite launch contracts and pre-negotiated rates.
Spaceflight also announced that it has acquired Herndon, Virginia-based OpenWhere, a geospatial firm that provides situational awareness, geospatial intelligence, change monitoring, and risk analysis. Spaceflight made the acquisition to “further enhance and execute on its BlackSky geospatial data platform for satellite imagery.” Deal terms were not disclosed.
TransDigm Group Inc. announced that it has completed its acquisition of Data Device Corporation (DDC) from Behrman Capital for $1.0 billion. DDC is a supplier of databus and power controls and related products used in military avionics, commercial aerospace and space applications. The company is projected to generate over $200 million of revenue in 2016 with approximately 75 percent coming from the defense market.
OSI Systems Inc. announced that it has entered into an agreement to acquire American Science and Engineering Inc. (AS&E) for $37.00 per share in cash or transaction price of approximately $269 million and enterprise value of $187 million. The price represents a 25 percent premium over the 90-day average closing price as of June 20, 2016. AS&E provides threat and contraband detection solutions for ports, borders, military, critical infrastructure, law enforcement, and aviation.
AS&E has trailing revenues of $103 million and adjusted EBITDA of $8.8 million including addbacks for restructuring and other costs. While the implied enterprise value multiple is fairly rich at over 21x, OSI projects annual cost synergies of $18 million which brings the multiple down to 6.6x. But we all know how those cost synergies usually play out.
According to the press release: “The acquisition of AS&E is consistent with OSI Systems' strategy to expand its security offerings, enhance its product development capabilities, and grow in attractive end markets and geographies. AS&E's track record of innovation, including its Z Backscatter® X-ray technology, established its position in the global cargo and vehicle inspection market. Furthermore, its significant installed base and related service offerings provide a stable, highly profitable base of business accounting for approximately half of its annual revenue. Once combined, the businesses will offer comprehensive, best-in-class technologies driven by a common focus on continued innovation. This unique portfolio, supported with a worldwide sales and service presence, and the significant anticipated cost synergies are expected to provide a foundation for accelerated growth in revenues and profits."
Financial advisors for OSI are Citigroup and Roth Capital while Evercore is advising AS&E. The deal is expected to close by the end of 2016.
Alpha Sintered Metals, a portfolio company of O2 Investment Partners, announced that it has acquired Precision Made Products (PMP). Based in Brunswick, Ohio, PMP provides CNC machining capabilities to customers in the medical, aerospace, and firearms markets. Deal terms were not disclosed.
HGH Infrared Systems, a subsidiary of HGH Systemes Infrarouges, announced that it has acquired Santa Barbara, California-based Electro Optical Industries (EOI). Previously owned by Blue Wolf Capital, EOI is a provider of high-performance infrared, visible, and ultra violet testing and calibration equipment used by clients in industries including aviation and aerospace, laboratories, government, imaging system manufacturers, medical research, and the DoD. Alderman & Company advised Blue Wolf Capital on the transaction. Deal terms were not disclosed.
Ontario Systems, a portfolio company of Arlington Capital Partners, announced that it has acquired Columbia Ultimate Business Systems. Based in Vancouver, Washington, Columbia provides software and solutions to outsourced revenue cycle management and accounts receivable management firms and government clients.
According to Matt Altman, a Managing Partner at Arlington states: “The combination of Ontario and Columbia creates a clear market leader in healthcare RCM and ARM software. Building upon relative strengths in the healthcare and government markets, Ontario and Columbia together will be ideally positioned to further strengthen its product offerings across a wide array of end-markets and support the continued advancement of its software and technology infrastructure.”
Deal terms were not disclosed.
Xator Corporation announced that it has acquired TSM Corporation, a provider of training, engineering, and logistics services to Special Operations, Defense, and Law Enforcement customers. Deal terms were not disclosed.
ManTech International Corporation announced that it has acquired the cyber business of Oceans Edge Inc. The acquired business is a provider of cyber network operations (CNO) solutions and specializes in vulnerability research, development, and analysis. Financial information and deal terms were not disclosed, however, the deal is expected to be slightly accretive in 2016.
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