CSRA announced it has completed its separation from CSC and is now trading as an independent public company under the ticker symbal CSRA. In addition, CSRA completed its previously announced merger with SRA International which was previously majority owned by Providence Equity Partners. As part of the merger, SRA shareholders received $390M in cash and approximately 25M CSRA shares representing approximatley 15 percent of the outstanding common shares.
As expected on a deal like this, a whole host of advisors were involved in the transaction including RBC Capital Markets, Guggenheim Securities, and Goldman Sachs as financial advisors to CSC regarding the spin-off of CSRA. Guggenheim Securities was financial advisor to CSC and CSRA on the SRA merger with RBC Capital Markets also providing advice. Allen & Overy LLP was legal advisor to CSC on the spin-off of CSRA and legal advisor to CSC and CSRA on the merger with SRA. Skadden Arps Slate Meagher and Florm LLP provided legal advice on tax matters related to the spin-off of CSRA.
Chemring announced that it has reached an agreement to acquire Wallop Defence Systems from Esterline Corporation for an up-front cash consideration of £2.5M and additional payments of up to £9.0M conditional on the future receipt of specific orders. Wallop products incclude decoy flare countermeasures used in the protection of aircraft from missiles. The deal is expected to close in early 2016.
Edwards Advisory Partners is representing Esterline in the transaction.
Global Defense & Natinonal Security Systems Inc. announced that it has completed its previously announced acquisition of STG Group Inc. STG provides cyber, software and intelligence solutons to the US government. Global Defense has changed its name to STG Group Inc. and will start trading under the ticker STGG.
Comtech Telecommunications Corp. announced that it has entered into an agreement to acquire TeleCommunications Systems Inc. (TCS) for $5.00 per share which represents an enterprise value of approximately $430.8M. TCS is a provider of secure and reliable wireless solutions that enable 911, commercial location-based services and deployable wireless infrastructure, cybersecurity, and applications for mobile location-based services and messaging. TCS has LTM revenues of $364.1M and adjusted EBITDA of $40.4M.
According to the press release, strategic benefits to Comtech of the acquisition include:
The transaction is expected to close no later than March 2016. Citigroup Global Markets Inc. is the financial advisor to Comtech. Proskauer Rose LLP is Comtech's legal counsel. Lazard is the financial advisor to TCS and Brian Cave LLP is TCS's legal counsel.
RMF Engineering announced that it has acquired CxAnalytics, a Williamsburg, Virginia-based commissioning firm. According to the press release, the acquisition "is an enhancement to the firm’s commissioning and condition assessment workforce and its capabilities across federal / state / local government, higher education and healthcare markets, where RMF has significant expertise."
Deal terms were not disclosed.
Australian-based contractor Cardno Ltd. announced that it has completed the sale of ATC Associates Inc. to private equity firm Bernhard Capital Partners for approximately $64M. ATC provides environmental and testing services, buildinng sciences, geotechnical engineering and construction materials testing. Cardno acquired ATC in March of 2012 for $106M but decided to divest the business as part of its strategic review since according to Cardno CEO Richard Wankmuller: "ATC is a lower margin business than the rest of Cardno’s US operations and does not operate in a service area that we are targeting for growth."
In October, Tribalco LLC acquired the GSA Alliant GWAC (Large Business) from Professional Software Engineering Inc. (PROSOFT). Alliant is a $50B (ceiling) program with an ordering period through April 2019, and ability to execute work through April 2024, that will allow Tribalco to provide a vast array of IT services and solutions worldwide to both Defense and civilian agencies. The deal was finalized following GSA's approval of the contract novation on October 30. Deal terms were not disclosed. Aronson Capital Partners served as the financial advisor to PROSOFT on the transaction.
While companies often target other companies for acquistion, there is an excellent opportunity to gain customer access and additional revenue stream through the acquisition of contracts. We believe there are many high-ROI deals to be had for companies looking to acquire positions on IDIQ contract vehicles from contract-holders who are not able or willing to monetize their prime positions. Please contact us if you would like to discuss further.
Kraken Sonar Inc. announced that it has acquired the underwater technology and IP formerly owned by Marine Robotics Inc. The acquired assets include all underwater robotics technology, IP and related physical assets including an operational SQX-500 UAV. Marine Robotics ceased operations following the receivership of its parent, Marport Deep Sea Technologies Inc. Most of the engineers previously employed by Marine Robotics are now Kraken employees.
According to Karl Kenny, Kraken President and CEO: "This acquisition brings us a significant underwater technology and IP portfolio and continues to build on our sensors-to-systems strategy to be a market leader in the Unmanned Maritime Systems industry."
Deal terms were not disclosed.
Arctic Slope Regional Corporatoion (ASRC) announced that its subsidiary ASRC Federal has acquired Data Networks Corporation (DNC), a Reston, Virginia-based contractor that provides a broad range of IT and program manageent services. DNC is on a number of contract vehicles including GSA Alliant, CIO-SP3 SB, GSA Schedules 70 and 874, and SeaPort-e.
ASRC Federal President Mark Gray comments: “The acquisition of DNC meets important objectives established by ASRC Federal’s strategic plan. Specifically, this acquisition expands our position in key federal IT markets, most notably health IT, while also augmenting our existing capabilities and services.”
Deal terms were not disclosed.
Tyler Technologies announced that it has closed on its deal to acquire New World Systems Corporation, a provider of public safety and financial solutions for local governments. The purchase consideration was approimately $670M in cash and stock. The company is projected to contribute $134M in revenue, $49M in adjusted EBITDA, and non-GAAP EPS of $0.56 for the year ending December 31, 2016.
The company's products include Aegis, a comprehensive suite for dispatch centers, police officers, firefighters, and first responders, and Logos, a suite of public administration software for city and county governments.
Wells Fargo Securities, LLC advised Tyler Technologies for on the transaction.
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