The LGL Group Inc. announced that it has acquired certain assets from Precise Time and Frequency Inc. (PTF Inc.). Based in Wakefield, Massachusetts, PTF Inc. provides high performance frequency and time reference standards used in various applications. The acquired assets will be held in a newly-formed subsidiary called Precise Time and Frequency LLC. Deal terms were not disclosed.
IMSAR LLC announced that it has sold its detect and avoid radar technology to Fortem Technologies. The technology enables small UASs to avoid midair collisions with other manned and unmanned vehicles. With the increase in drone traffic and recent incidents involving passenger planes, this seems like a timely acquisition of key technology. Deal terms were not disclosed.
Ducommun Inc. announced that it has agreed to sell Miltec Corporation to San Diego-based General Atomics for a purchase price of $14.6 million in cash. Acquired by Ducommun in 2006 for $50 million and based in Huntsville, Alabama, Miltec provides engineering, technical and program management services to the DoD and Intel agencies. The business generated 2015 revenue of $28.2 million.
This was a bit of a surprising deal since General Atomics isn't exactly known as an acquirer in recent years, with most of its acquisitions occurring during the 1990's. However, they must have seen Miltec as a good opportunity to get complimentary capabilities at a good valuation (half times 2015 revenue). The GA press release states that Miltec will become part of GA's Electromagnetic Systems (EMS) group and will "accelerate GA's depth of knowledge in key technical areas of hypersonic vehicles, small satellites and related products and programs."
KippsDeSanto is the financial advisor to Ducommun on the transaction.
Paris-based investment firm Eurazeo PME announced that it has entered into an agreement to acquire 88% of Orolia SA alongside the founders and management for €20 per share or an enterprise value of approximately €100 million. Based in France, Orolia is a provider of reliable GPS-type signals, enabling the proper functioning of critical positioning, navigation, timing, and synchronization solutions. The company operates two divisions: Spectracom and McMurdo. Spectracom supports integration of resilient PNT technology to enable mission-critical applications and McMurdo provides end-to-end search & rescue and maritime domain awareness solutions. Orolia has a strong international presence with 80 percent of its revenues coming from outside of France including the US, UK, and Switzerland).
Orolia has trailing twelve month revenue of €97 million and EBITDA margins of 12 percent resulting in a revenue multiple of 1.0x and EBITDA multiple of 8.3x.
Erwann Le Ligné, Managing Director of Eurazeo PME, states: “We will be pleased to assist Orolia in accelerating its growth and pursuing its market consolidation, particularly at the international level. We also wish to help strengthen the
company’s ability to roll out its offering on promising markets and to structure and reinforce its organization, through the support of our Corporate teams, particularly in CSR areas.”
The deal is expected to close in April subject to closing conditions including the granting of regulatory authorizations in the US.
A&D-focused PE firm Enlightenment Capital announced that it has invested in Huntsville, Alabama-based Gleason Research Associates (GRA). GRA provides engineering, design, and full lifecycle support services in areas including weapons, sensors, and guidance control systems with a particular focus on the Hellfire program. The company also has capabilities in unmanned aerial systems, training, modeling & simulation, and logistics. GRA holds both GSA IT Schedule 70 and Professional Engineering Services contracts, and is a sub to SAIC on AMCOM EXPRESS.
Deal terms were not disclosed.
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