Honeywell announced that it has entered into an agreement to acquire Ontario, Canada-based COM DEV International, a leading manufacturer of space hardware subsystems, for an aggregate purchase price of C$455M ($345M USD), net of cash and debt. Prior to closing, COM DEV will spin-off its exactEarth subsidiary to current shareholders which means Honeywell will be acquiring just the electrical and optical components and subsystems equipment business. exactEarth is a provider of global maritime vessel data fro ship tracking and maritime situational awareness solutions. COM DEV projects 2015 revenue of approximately C$210M ($160M USD) and an adjusted 2015 EBITDA which will result in a purchase price multiple of approximately 10 times.
Honeywell Aerospace President and CEO, Tim Mahoney states: "COM DEV's differentiated technologies and strong position in the growing connectivity industry make the company an attractive addition to our business. We are equally excited about what we can bring to COM DEV, specifically our broad product portfolio, deep industry expertise and relationships, global sales force and brand, and our proven Honeywell Operating System. We are confident that all of our key processes and initiatives will be immediate differentiators for COM DEV."
The transaction is expected to close by the end of the first quarter in 2016. Financial and strategic advisors for COM DEV include Canaccord Genuity Corp. and The Black Box Institute. Legal advisors for COM DEV and exactEarth include Gardiner Roberts LLP, Osler Hoskin & Harcourt LLP, and Stikeman Elliott LLP.
Read COM DEV's press release for more details on the transaction.
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