Industry Week in Review – September 23, 2011

On September 23, as the government’s 2011 fiscal year end approaches, the Republican controlled House passed a continuing resolution (“CR”) aimed at preventing a government shutdown by funding operations for the first seven weeks of the new fiscal year. However, the bill was “put-aside” by the Democrat controlled Senate, disapproving of tying disaster relief funds to cuts in Democrat-backed programs. This move stops short of killing the deal, but leaves the debate open until as late as Monday.  Although disaster relief was the main topic of debate, and could be left unfunded as soon as next Friday if a resolution is not reached, it looks as if Congress may also have eliminated the one expected silver lining defense contractors were looking for in this stop-gap measure.

Overseas Contingency Operations (“OCO”) funding appears to have been reduced by the 25% planned for FY2012, eliminating the possibility that the new CR would extend FY2011 OCO funding levels into FY2012. The shift represents a decrease from FY2011’s $157 billion run-rate to FY2012’s run-rate of $118 billion. While OCO represents roughly 60% of operations and maintenance spending, it also includes modest investment spending. If this CR is passed, contractors supporting combat operations will likely see some of the effect, but infrastructure firms are expected to see the greatest downside.

Notes on some big movers

Goodrich Corp. (Up 31.1%) – Despite multiple investigations announced concerning possible breaches of fiduciary responsibility, shares are up this week after United Technologies Corp. announced that they will acquire Goodrich for $127.5 per share, an approximate value of $18.4 billion.

Oshkosh Corporation (Down 19.3%) – shares are down this week amid a market downturn as union workers went on strike over job security, seniority, and health and medical issues. The union’s five-year contract is set to expire a week from Saturday.

Notes on some relevant transactions

General Dynamics to acquire Metro Machine Corp., a leading East Coast surface-ship repair company that supports the U.S. Navy fleet in Norfolk, Va. The Norfolk location will extend the reach of NASSCO’s ship-repair operations to a key East Coast naval port and will enhance General Dynamics’ ability to deliver cost-effective maintenance and repair services to the U.S. Navy. Terms of the deal were not disclosed.

United Technologies Corp. to acquire Goodrich Corp., a global supplier of systems and services to the aerospace and defense industry, for $127.5 per share, equating to a total enterprise value of roughly $18.4 billion. The acquisition further strengthens United Technologies position in the growing commercial aerospace market and enhances its ability to support its customers with more integrated systems.

CACI to acquire Advanced Programs Group, an Oracle Platinum Partner and leading provider of Oracle e-Business services in the federal market, for an undisclosed amount. The acquisition makes CACI one of the largest federal Oracle providers and the only Federal Shared Service Provider in both the financial and contract lifecycle management business areas. APG’s 2010 revenue was $41.9 million.

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Industry Week in Review – September 9, 2011

As General Ray Odierno began his first week as Army chief of staff, he dove head first into the increasingly hot topic of U.S. troop drawdown in Iraq.  With 46,000 U.S. forces currently deployed, mostly in advisory roles, significant drawdown must occur before the end of this year. The current security agreement with the Iraqi government calls for all American troops to pull out by the end of the year; however, lawmakers and senior officials are debating over how many troops will actually remain into 2012. Defense Secretary Leon Panetta endorsed a tentative plan for a force of 3,000 to 4,000 troops, but, other defense officials believe that that number should be closer to 10,000.

Although Odierno has not officially stated how many troops he believes should remain, he does believe that, “there comes a time…when [U.S. presence] becomes counter-productive” and the number of troops feeds the perception of an American “occupation.” Currently, he and other U.S. officials are looking to shift some tasks currently performed by American troops in Iraq to private contractors. In the end, however, the final decision about the size of a post-2011 force in Iraq would be up to the Iraqi government, U.S. leaders and military commanders.

Notes on some big movers

Globecomm Systems Inc., (Up 9.8%) – Shares are up this week after Globecomm announced the Company has been awarded two contracts valued at $66.6 million with options. Globecomm expects EPS of $0.73 to $0.83 this year.

Shaw Group, (Up 6.2%) – Shares are up this week after the company confirmed plans to sell its 20% stake in Westinghouse Electric Co. back to Toshiba Corp, a move that will eliminate about $1.7 billion of Shaw’s debt.

GKN Plc., (Down 8.0%) – Shares are down after a volatile week in the company’s stock price. The volatility stems from the company’s acquisition of Stromag Holding GmbH, a provider of mechanical drive components and accessories for use in industrial machinery, crane equipment and trucks.

Notes on some relevant transactions

Xceedium, Inc. to acquire Irdeto B.V. Cloakware Password Management Business, a provider of dynamic security and monetization technologies, and new forms of distribution for broadcast, broadband, and mobile entertainment, as well as, app, eStores and consumer devices. The acquisition allows Xceedium to provide corporate, government and critical infrastructure organizations new abilities to safeguard important data from insider threats and to meet compliance requirements. The terms of the deal were not disclosed.

KS International, LLC, a portfolio company of DC Capital Partners, LLC, to acquire Project Management Service, Inc. (“PMSI”), a specialized provider of engineering and construction management consulting services to both federal and state government agencies, for an undisclosed amount. The acquisition of PMSI will significantly enhance KS International’s engineering and technical services capabilities and expand its market position.

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Industry Week in Review – September 2, 2011

As he bade farewell to the military Wednesday and prepares to take over as the CIA Chief, former United Stated Army, four–star general David Patraeus expressed concern that further defense budget cuts could undermine the military force he helped to shape and jeopardize the U.S. military’s ability to fight insurgencies. But, as treasury yields continue to head south and the U.S. economy fails to add jobs for the first time in almost a year this month, fears of another recession grow, precipitating a drop in all 10 sectors of the S&P 500 and all 30 of the Dow components. Such fiscal pressures and simultaneous ground wars have prompted calls to resume more conventional training and move away from Patraeus’ counterinsurgency approach, however, the general emphasized that amid “difficult” budget decisions it is imperative to build a force “that maintains the versatility and flexibility that [has] been developed [over] the past decade in particular.” As investors wait for congressional outcomes to calm market volatility, it appears the military will have to wait and do the same.

Notes on some big movers

SAIC, Inc. (Down 10.4%) – Shares are down this week after CEO Walt Havenstein, announced “disappointing” 2Q2011 results. Quarterly revenue was down 6.0% this quarter to $2.6B, operating income fell to 8.1% of revenue from 9.9% last quarter, and diluted EPS dropped $0.10 to $0.32.

Esterline Technologies Corp. (Down 9.2%) – Shares are down this week after the aerospace and defense supplier reported adjusted earnings in 2011 of less than $4.55 per share well below analysts’ estimates of $5.07 per share.

Notes on some relevant transactions

CSC acquired Maricom Systems, a provider of business intelligence and data management solutions to support mission-critical health IT systems. The acquisition expands CSC’s support of the U.S. Department of Health and Human Services’ efforts to implement IT improvements in the Patient Protection and Affordable Care Act. The deal also enhances CSC’s capabilities in the areas of healthcare informatics and data management. KippsDeSanto acted as the sole financial advisor to Maricom, terms of the deal were not disclosed.

IBM to acquire Algorithmics, a provider of risk solutions, analytics and advisory services to financial organizations and insurance businesses for $387M. The acquisition expands IBM’s analytic practices in the financial services industry and enhances IBM’s Business Analytics and Optimization capabilities.

IBM to acquire i2 Limited, a provider of intelligence analytics for crime and fraud prevention efforts based in Cambridge, UK. The acquisition accelerates its business analytics initiatives and helps clients in the public and private sectors address crime, fraud, and security threats. Terms of the deal were not disclosed.

Accelera Solutions, Inc. acquired ITS Group, Inc., an IT solutions provider specializing in virtualization solutions focused on cloud computing, desktop, application, and server virtualization. The strategic acquisition is expected to help Accelera become a leading partner in the deployment of Microsoft’s Systems Management and Messaging technologies and significantly expand its Microsoft offerings.

The Gores Group, LLC enters into asset purchase agreement with Point Black Solutions, Inc., a leader in the field of protective body armor used by military, law enforcement, and security and corrections personnel around the world. The agreement is intended to rectify the company after it filed for Chapter 11 in April 2010.

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Industry Week in Review – August 26, 2011

More than 40 months after the Boeing 787 Dreamliner was originally slated for delivery to Japan’s All Nippon Airways Co. (“ANA”), U.S and European regulators have awarded regulatory approval for the aircraft to enter commercial service. Originally due in May 2008, ANA will take delivery of the first of its 55 planes on September 26. Despite having to compensate customers for late delivery and running several billion dollars over budget, Boeing has stated that the program remains profitable. Most analysts agree that Boeing will profit from the program, but question when it will break even. Upon delivery of the first aircraft, Boeing will begin releasing its accounting treatment of the 787 program with its quarterly results.

Currently with 827 orders at a price of $185 million per plane, the Dreamliner, made largely from light-weight carbon composites that help lower fuel costs, could change the way aircrafts are manufactured in the future.

Notes on some big movers

HEICO Corp. (Up 23.7%) – Shares are up this week after posting better-than-expected quarterly profits helped by strong results at its flight support group. The company raised its full-year forecast and expects sales and net income in 2011 to grow by 20% and 29%, respectively. The company had previously forecast sales growth of 18% and net income growth of 20%

Oshkosh Corp. (Up 14.2%) – Shares are up this week after many market analysts gave the company “buy” signals. During the past month, shares of the firm were “washed out” and oversold on fears of how government spending cuts would impact the company, but have since rebounded as these fears lessened.

Notes on some relevant transactions

Verizon Communications acquired CloudSwitch, a provider of cloud software technology for an undisclosed amount. The acquisition deepens Verizon’s capabilities in enterprise cloud solutions and is expected to create synergies with Verizon’s IT services subsidiary, Terremark.

Lockheed Martin to acquire QTC Holdings, Inc., a provider of outsourced medical evaluation services to the U.S. government and the U.S. department of Veterans Affairs. The acquisition is expected to expand Lockheed’s Information Systems & Global Solutions business into adjacent health care services markets.  The terms of the deal were not disclosed.

HP to acquire Autonomy Corporation, a leading provider of enterprise information management solutions, for $11.2 billion. As HP continues to reshape its strategic focus away from the PC market, the acquisition is expected to position HP as a leader in software and information services and provide significant leadership in large and growing markets.

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Industry Week in Review – August 19, 2011

The U.S. government is taking the first steps since its downgrade to avoid a possible double-dip recession. Fed officials announced this week that they will hold short-term interest rates at record, near zero, levels, until at least the middle of 2013, in an effort to spur economic growth. Additionally, the Fed discussed the use of quantitative easing, but, due to the surge in inflation in July (core inflation increased 0.2%, 1.8% since June of last year), a third round of government bond purchases will most likely be postponed.

The White House has also taken steps to prevent a second recession, directing the Defense Department, along with all federal agencies to draw up 2013 budget options that will meet the strict spending guidelines laid out in the Budget Control Act of 2011. Every government office will have to submit proposals based on two scenarios—a 5% cut and a 10% cut from 2011 discretionary spending—very close to what the DoD would experience given the first $350 billion spending cut and possible $1.2 trillion trigger. The 10% scenario, for example, would lower the DoD budget to $477 billion, just $5 billion above what the trigger would instate, however, supplemental spending on overseas operations in Iraq and Afghanistan, veterans programs, and possibly military pay, would be exempt from all spending cuts.

Notes on some big movers:

AeroFlex Holding Corp. (Down 26.2%) – Shares are down this week after 1Q2012 guidance was released below analysts’ estimates. AeroFlex forecasted 1Q2012 revenue and adjusted EBITDA of $160 – $165 million and $24 -$27 million, respectively, while the market was expecting revenue of $175 million and EBITDA of $42 million.

BE Aerospace Inc. (Down 12.1%) – Shares are down due to broader market forces as well as RBC Capital’s downgrade of BE Aerospace two notches from Top Picks List at RBC Capital to Outperform.

Notes on some relevant transactions:

General Dynamics to acquire Vangent Inc., a subsidiary of Vangent Holding Corp, for $960 million, or 11.0x LTM EBITDA. Vangent Inc., majority-owned by Veritas Capital, is a leading provider of healthcare information-technology and business systems to federal agencies. The acquisition will add depth and breadth to General Dynamics’ healthcare IT organization and create a Tier 1-level healthcare IT business unit.

GTSI Corp. to acquire Information Systems Consulting Group Inc. (“InSysCo”), a privately held Federal IT professional service provider, for $14.4 million. The acquisition expands GTSI’s professional services capabilities in the areas of software and database development and maintenance. InSysCo will help grow GTSI’s professional services business component.

Dovel Technologies to acquire ZapThink LLC, a provider of thought leading content, training, advisory, and expertise to an audience of over 20,000 senior IT executives, enterprise architects, and other IT practitioners. The acquisition will allow Dovel Technologies to expand its pool of talent and create more customized courses to further educate the market on the realities of SOA and Cloud. The details of the deal were not disclosed.

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Industry Week in Review – August 12, 2011

After trading ended last Friday, the United States credit rating was downgraded by Standard & Poor’s to AA+, down from its top grade of AAA. The downgrade reflected the company’s view that, “the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenge.” Despite Moody’s Investor Service and Fitch Ratings, the other two main credit rating agencies, deciding not to downgrade the U.S. government at this time,  equity markets saw high volatility this week, with the DJIA moving over 400 points per day until Friday when it finally closed at 11,269 down 176 points for the week.

The U.S. government, however, may not be the only entity subject to downgrades. According to a report published by Moody’s, defense contractors could see their credit ratings fall as defense budgets have been placed “at the center of the likely solution to the nation’s persistent deficits and escalating debt burden.” With cuts most likely to hit procurement and R&D accounts the hardest, profit margins for big and small defense contractors alike could be squeezed.

Notes on some big movers:

CPI Aerostructures (Down 17.5%) – Shares fell after the company revised its FY2011 guidance on Tuesday. CPI now expects FY2011 revenue and net income to be $74 million and $7.5 million, respectively. Analysts had expected the company to report revenue and net income of $80 million and $9.4 million, respectively.

Ducommun Inc. (Down 15.9%) – Shares fell this week amid the overall market turmoil following the U.S. debt downgrade. Additionally, the company’s stock itself downgraded from Buy to Hold after net income was down 153% to negative $3.0 million this quarter compared to $5.7 million the same quarter one year ago.

Computer Sciences Corporation (Down 12.7%) – Shares fell this week after disappointing fiscal first quarter results were released.  New business this quarter was $2.3 billion, down from $3.3 billion last year same quarter and operating margins fell 262 basis points to 4.5% well below the 6.0% the Street was expecting.

Notes on some relevant transactions:

Sotera Defense Solutions (“Sotera”) to acquire Software Process Technologies Inc. (“SPT”), in a deal expected to close September 2011. SPT, a provider of mission-focused, specialized software engineering capabilities that supports the cyber intelligence community, will double Sotera’s presence in the Ft. Meade area and further expand its capabilities in cyber intelligence and cyber operations.

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Industry Week in Review – August 5, 2011

On Tuesday, August 2nd, the day the U.S. Treasury warned that it would run out of cash to meet its debt obligations, President Obama signed the deficit-reduction deal that finally raised the U.S. debt ceiling. The deal allows for a two-stage $900 billion debt increase in return for the promise of $917 billion in spending cuts over the next 10 years.

Additionally, a 12-member congressional committee, comprised equally of Democrats and Republicans, has until December 23rd to find and approve $1.5 trillion in further deficit reductions, in order for a second $900 billion debt ceiling increase to occur. If the committee fails to reach agreement, or the proposal is rejected, $1.2 trillion in spending cuts, taken equally from domestic spending and defense, will be triggered.

The Pentagon believes it will be able to meet the initial spending cuts called for in the debt-reduction deal ($400 billion over the next decade, based on the president’s budget submitted to Congress in February) but warned that deeper cuts could lead to civilian furloughs and program terminations.

Notes on some big movers:

SPX Corp. (Down 25.6%) – Shares fell Wednesday after 2Q11 earnings were released. Despite quarterly revenues up 16.4%, net income per diluted share this quarter was $0.62 compared to $1.40 same time last year. Free cash flow was down $19.1 million this quarter from last year due primarily to higher capital expenditures.

Embraer SA (Down 19.7%) – Shares fell this week amid an overall market downturn. Embraer stock closed today at $23.71, near its 52-week low of $23.37. The decrease was amplified by technical traders after the stock broke a $23.57 support level.

Notes on some relevant transactions:

Astrium N.V. to acquire Vizada SAS from Apax France, a French private equity fund, for $960 million, representing multiples of 10.1x EBITDA and 1.45x revenue. Vizada is a leading independent provider of global satellite-based mobility communication services. The acquisition marks a step towards the realization of Astrium’s parent company, EADS’, strategy to balance platforms with services, develop business in North America, and diversify its workforce.

Strategic Enterprise Solutions (“SE Solutions”), Inc. to acquire Evolution Technologies, Inc., a recognized leader in emergency and disaster process, systems support, and electronic information exchange. The addition of Evolution Technologies broadens SE Solutions’ mission capabilities and allows it to deliver services throughout its entire domain from the Department of Homeland Security to the first responder. The terms of the deal were not disclosed.

Andrew Redfern to acquire Lightning Aerospace, a Coventry engineering firm that provides laser and water jet material cutting, fabrication of steel and aluminum components and bespoke wire harnessing to the defense, commercial and aerospace sectors. Mr. Redfern, an aeronautical engineer and entrepreneur believes that his commitment to delivering on-going operational improvement will allow Lightning Aerospace to deliver higher levels of performance to its customers. The terms of the deal were not disclosed.

TransDigm Group Incorporated to acquire Schneller Holdings LLC, from an affiliate of Graham Partners, Inc., for approximately $288 million. Schneller Holdings designs and manufactures highly engineered laminates, thermoplastics, and non-textile flooring for use primarily on airplane side walls, lavatories, galleys, bulkheads and cabin floors.  The acquisition will bring significant value creation opportunities through both the application of proven methodologies as well as a recovering commercial aerospace market.

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Industry Week in Review – July 29, 2011

The White House and Congress continued to debate over a deal raising the U.S. federal borrowing limit. The House postponed Speaker Boehner’s plan to increase the debt ceiling after he was unable to quell significant opposition from certain GOP leaders. With it unclear whether the vote would be rescheduled, Senators Harry Reid and Mitch McConnell’s incremental raise plan has emerged as a more viable alternative to avoid default. President Obama has indicated that he would accept a two-part plan to raise the $14.3 trillion debt ceiling, with the second part including tax reform and changes to the entitlement programs Medicare, Medicaid, and Social Security. Obama also said the first step should be substantial enough to extend the debt ceiling beyond the 2012 election.

Notes on some big movers:

Finmeccanica, SpA (Down 27.9%) – Shares fell for the week as the Company released 1H 2011 results below expectations and lowered 2011 revenue forecasts by €1 billion. Reported revenue fell 3% to €8.4 billion and adjusted EBITDA fell 25% to €440 million.

Unisys, Inc. (Down 20.8%) – Shares fell for the week as the Company reported 2Q 2011 net loss of $11.6 million, or $0.27 per diluted share. Additionally, gross profit for this quarter was 22.8%, down from 27.8% in the same quarter in 2010.

Oshkosh Corporation (Down 17.5%) – Shares fell for the week as the Company reported 2Q 2011 earnings of $68.4 million ($0.75 cents per share) compared to last year same quarter earnings of $211.2 million ($2.31 per share). The company attributes the fall in price to pending U.S. defense spending cuts.

Notes on some relevant transactions:

KeyW to acquire Flight Landata, Inc., a provider of agile airborne ISR solutions and Micro Terrain Intelligence to the DoD and the Warfighter, for $30 million in cash. The transaction, which is expected to close in early August, expands KeyW’s cyber superiority platform to encompass geospatial and imagery intelligence.

Airbus to acquire Metron Aviation, a provider of advanced Air Traffic Management (ATM) products and services for the global aviation industry. The terms of the deal, which is expected to close later this year, were not disclosed. This acquisition strengthens Airbus’s strategy to accelerate and support ATM programs that will improve global air transportation capacity, efficiency and environmental sustainability.

CACI International to acquire Paradigm Holdings Inc., a provider of cybersecurity and enterprise IT solutions federal civilian agencies, DoD, and the IC for an undisclosed amount. The acquisition, which is expected to close in Fall 2011, expands CACI’s cybersecurity capabilities and bolsters its strong presence in supporting national security missions.

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Industry Week in Review – July 22, 2011

A debt ceiling agreement remained elusive this week, with the Senate rejecting the House’s “Cut, Cap and Balance” Plan on Friday. Nevertheless, President Obama and House Speaker Boehner seemed to be moving closer toward a deficit reduction deal cutting as much as $3 trillion in spending coupled with revenues of $1 trillion from tax code overhauls. The potential programs to see cuts remain unclear as the deadline for a deal draws closer, creating further uncertainty in the market. Other proposals on the table include Senators Harry Reid and Mitch McConnell’s incremental raise plan and the Gang of Six plan to cut the deficit by $3.7 trillion including $1 trillion in revenue increases.

Notes on some big movers:

Textron (Up 13.5%) – Shares were up for the week following strong second quarter earnings that exceeded Wall Street expectations.  Net income rose to $90 million, or $0.29 per share, beating analyst expectations of $0.24 per share. Revenue rose 12.2% to $2.48 billion, falling short of Wall Street revenue estimate of $2.83 billion.

Orbital Sciences Corp (Up 8.7%) – Shares rose as the company reported strong second quarter earnings. The company earned $0.36 per share, surpassing analyst expectations $0.22 per share, on $354.3 million of revenue, versus expectations of $328 million.

Notes on some relevant transactions:

Boeing announced Thursday that it will acquire Solutions Made Simple Inc., an information services provider for the IC and U.S. government. The terms of the deal, which is expected to close in 3Q11, were not disclosed. The transaction will further expand Boeing’s capabilities in C4ISR and cybersecurity.

SAIC announced Thursday that it will acquire Vitalize Consulting Solutions Inc., a provider of clinical, business, and IT services for healthcare enterprises. The terms of the deal, which is expected to close in early August 2011, were not disclosed. The transaction will strengthen SAIC’s existing government health solutions business and provide a dynamic channel into the commercial health provider market.

Stratos BV, a global provider of advanced mobile and fixed-site remote communications solutions, announced Thursday that it has acquired Blue

Ocean Wireless Ltd., a provider of shipboard GSM services that enables crewmembers to use personal GSM phones to communicate via voice and SMS, for an undisclosed amount. The transaction will improve Stratos’ GSM services to its global customer base.

General Dynamics announced Monday that it has acquired Network Connectivity Solutions Corp., a provider of enterprise services and cloud computing to the DoD, for an undisclosed amount. The cash transaction brings GD a prime position on the DISA Encore II vehicle and bolsters its enterprise IT solutions for DoD customers.

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Industry Week in Review – July 15, 2011

White House Chief of Staff Bill Daley announced Monday that the U.S. will delay $800 Million in Pakistan Aid, citing a “low point” in the relationship following the May 2nd raid that killed Osama bin Laden. Daley cited concerns over recent actions taken by Islamabad, such as arresting an army general accused of aiding the CIA in the operation and expelling more than 100 U.S. military personnel.

Additionally, President Barack Obama noted during a televised press conference his belief that the proposed cuts by the Simpson-Bowles Commission of $1 Trillion over the next decade are too deep for a country still at war, reiterating his recommendation of a $400 Billion cut target. Despite his lower goal, the Pentagon seems to be preparing for an even leaner budget, with General James Cartwright, Vice Chairman of the Joint Chiefs of Staff, revealing that he is preparing budget drills well over the President’s request.

Notes on some big movers:

AeroVironment, Inc. (Down 13.0%): Shares fell for the week as Raymond James and Lazard Capital downgraded the Company’s shares from “outperform” and “buy” ratings to “market perform” and “neutral” ratings, respectively

FLIR Systems, Inc. (Down 15.5%): Shares fell for the week as the Company announced that it projects 2Q 2011 revenue and EPS to be approximately $390 million and $0.18; Results for the Company’s Commercial Systems division remained strong, while continued weak demand in the Government Systems division negatively impacted results for the quarter

Notes on some relevant transactions:

Moelis Capital Partners announced Monday that it will acquire CyberCore Technologies LLC, a provider of cyber security, systems integration and secure supply chain management services for an undisclosed amount. Moelis Capital lauded CyberCore’s impressive management team and growth prospects furnished by strong customer relationships.

Precision Castparts Corp. announced Monday that it will acquire Primus International, a provider of complex components and assemblies, including swaged rods, advanced composites, and machined components to the global aerospace industry, for $900 million in cash. The transaction expands Precision Castparts’ overall product and service offerings, particularly in its aerostructures business which has complimentary but no overlapping capabilities.

Ayelet Investments LLC announced Tuesday that it has agreed to acquire Conmed Healthcare Management Inc., a provider of correctional healthcare services to county and municipal detention centers in the United States for $57.2 million, representing LTM Revenue and EBITDA multiples of 0.92x and 15.5x, respectively.

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