Reuters is reporting that PE firm Apollo Global Management LLC is currently the leading bidder to acquire PAE from Lindsay Goldberg & Co. LLC in a deal worth almost $900M including debt. PAE was acquired from Lockheed Martin in 2011 for $350M. Other PE firms in the mix are reported to include American Securities LLC and Platinum Equity LLC.
With revenues north of $1B and 15,000 employees in over 60 countries, PAE provides aviation, logistics and training support services to the US government and other countries.
Strat Aero plc announced that it has acquired Fort Worth, Texas-based Aero Kinetics, the first company to file for FAA certification for multi-rotor unmanned aircraft. While Strat Aero servces law enforcement and military agencies, Aero Kinetic is focused on providing UAV solutions to the US commercial market including Fortune 100 clients. In addition to UAV's, the company also provides special missions, aircraft maintenance, and aviation consulting services. These other business lines will be retained by Aero Kinetics' parent company and rebranded in Q1 2016.
Aero Kinetic's press release states the total consideration is valued at $24M with incentives. The consideration includes $1.2M consisting of $425K of cash at closing and $775K in the form of a seller note. In addtion, there is a contingent consideration of $250K based on revenue generated from an existing UAV services contract and 6M warrants based on achieving FAA certification and revenue targets. An additional 9.2M warrants will also be issued at closing.
Tony Dunleavy, CEO of Strat Aero, states: "Aero Kinetics brings the technological know-how and capability into the enlarged group and completes our full service offering across all commercial markets. Strat Aero is now able to offer full solutions across the globe and, once FAA type certification is achieved which is expected to be in the first half of 2016, we will have a compelling solution for Fortune 100 and other very large organisations with multiple internal use cases. Our solution will provide command and control over multiple UAVs, secure often live data transmission and integration to a distant central source, minimise national and state liabilities, and maximise future use cases via urban, night-time and beyond line of sight flights, all of which will be essential ingredients and USPs of the Strat Aero group."
Check out other UAV deals in our M&A database.
PrismTech announced that it has been acquired by ADLINK Technology Inc., a provider of application-ready intelligent platforms. PrismTech is a provider of software platforms and tools for the Internet of Things (IoT), industrial Internet, and wireless communications to clients in markets including industrial automation, smart cities, energy, transportation, healthcare, aerospace, defense, IT and networks.
So what does PrismTech's products actually do? From the press release: "PrismTech’s Vortex intelligent data-connectivity platform provides efficient, secure and interoperable internet scale real-time data-sharing. Vortex is a key enabler for systems that have to reliably and securely deliver high volumes of real-time data with stringent end-to-end qualities-of-service. The recently announced Vortex 2.0 platform enables Internet-scale seamless and secure data-connectivity across embedded, web, mobile and enterprise systems, and provides best-in-class support for Fog and Cloud computing architectures."
Deal terms were not disclosed.
Kapsch TrafficCom AG announced that it has entered into an agreement to acquire the global Transportation Business of Schneider Electric for a purchase price of €35 million on a cash-free and debt-free basis. The business which was formerly operating as the Televent Trafico y Transporte provides Advanced Traffic Management Software (ATMS) solutions and generated €134 million of revenues in 2014.
According to Georg Kapsch, CEO, Kapsch TrafficCom Group.: “Schneider’s EcoTrafixTM software suite extends our already robust solution portfolio enabling Kapsch to offer an Integrated Mobility Management solution to authorities within and across a metro area to optimize use of multi-modal transportation assets and enable exceptional user experiences.”
The deal is expected to close in the next few months.
LookingGlass Cyber Solutions announced that it has acquired Cyveillance, a leader in open-source threat intellingence (OSINT), along with a $50M round of financing from NewSpring Capital. Cyveillance offers a cloud-based platform that identifies risks and threats by combining web searches, social media monitoring, underground channel information, and global intelligence with tools and databases of threat actors, domain names, and IP data, phishing activity and malware. While LookingGlass serves commercial and government clients, Cyveillance appears to be more commercially-focused with clients in the energy, entertainment & media, financial services, hospitality & travel, insurance, manufacturing, pharmaceutical & healthcare, retail, and technology industries.
According to the press release: "This strategic acquisition solidifies LookingGlass’ ability to deliver the most advanced and comprehensive threat intelligence driven solutions from a single company, enabling security teams to have the best ability to find and mitigate threats using threat, Internet and customized intelligence"
In addition to the acquisition, LookingGlass will be using the recent capital raise for product development and integration, international expansion, sales & marketing, and customer support. Coupled with the company's $20M Series B funding earlier this year, LookingGlass has had a busy year raising $70M and completing three acquisitions including CloudShield and Kleissner & Associates.
ARC Securities advised LookingGlass on the acquisition and capital raise. Deal terms were not disclosed.
Check out our M&A database to see valuation data on other cybersecurity deals.
Digital Barriers plc announced that it has entered into an agreement acquire Ashburn, Virginia-based Brimtek Inc., a provider of surveillance solutions to military and law enforcement customers. Brimtek's products and solutions include surveillance, reconnaissance, data collection and processing, and secure communications as well as its own proprietary set of surveillance products which are packaged with third party hardware and software to deliver an integrated surveillance system. The company is projected to generate 2015 revenues of around $40M with EBITDA of around $3.5M. The purchase consideration is comprised of $25M payable at closing and $20M in earnout based on achieving certain performance targets through 2017.
Digital Barriers cites the FCC's 2015 spectrum reallocation that raised $41B as a driver for material US investment in surveillance technology and infrastructure over the next few years, spending which the company belives will continue to greatly benefit Brimtek. Brimtek is expected to be the platform for growth in the US market and will become the US Government Services division of Digital Barriers.
Data analytics is hot, and no company is hotter in the space than Palantir Technologies which just raised $679M in its latest funding round. The company is estimated to be valued at around $20B, which makes it one of the most valuable venture-backed companies in the US. Palantir is probably best known for helping the US track down Osama bin Laden and its solutions are used by the military and Intelligence Community as well as commercial and non-profit organizations to help with intelligence analysis, cyber security, fraud detection, and disaster response. Investors in Palantir includes In-Q-Tel, Founders Fund and Ulu Ventures.
Jensen Hughes announced the recapitalization of the company by San Francisco-based private equity firm Gryphon Investors. With annual revenues of approximately $180M, Jensen Hughes is a specialty engineering firm that provides fire protection systems design and analysis, code consulting, hazard and risk assessments, forensic engineering, fire research, and security services.
According to the press release: "Gryphon will provide JENSEN HUGHES with substantial new investment capital and business expertise. This will enable JENSEN HUGHES to continue providing clients with innovative safety solutions through a growing global network of technical experts while offering an unmatched scope of specialty engineering services."
Deal terms were not announced.
Kurion Inc. announced that it has acquired UK-based Oxford Technologies Ltd., a provider of robotic and remote handling systems. Oxford specializes in full life-cycle remote handling systems, complex plant assembly, and radiation-hardened systems. The company's clients include the EU Commission, ITER and the UK Atomic Energy Authority.
Kurion CEO William Gallo comments: "“Oxford Technologies’ suite of technologies, client base and team of more than 60 highly skilled engineers and project managers will augment the Kurion team and provide an established base of operations for our continued expansion in Europe. The synergy of the two companies will accelerate Kurion’s growth.”
Deal terms were not disclosed.
Veritas Completes Acquisition of GE Intelligent Platforms Embedded Systems Inc., Renames Business Abaco Systems
Veritas Capital has completed its acquisition of GE Intelligent Platforms Embedded Systems Inc. from General Electric and has renamed the business Abaco Systems Inc. Abaco provides open architecture computing and electronic systems for aerospace, defense, and industrial applications.
Bernie Anger, Abaco Systems President and CEO comments: "As an independent embedded technology and systems company, “we see real opportunity to take our extensive experience, mission-critical technology and the repeatable business processes we have developed to continue building a business that combines a commitment to technical innovation with extreme focus on customer service. The company is positioned to benefit from long-term market trends, including shifts towards open architecture, interoperable systems, smarter purchasing initiatives and technological modernization.”
Deal terms were not disclosed.
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