KippsDeSanto & Co. Advises Avenge, Inc. on its Sale to MAG Aerospace

KippsDeSanto & Co. is pleased to announce the sale of Avenge, Inc. to MAG Aerospace, supported by Clairvest Group, Inc.

Headquartered in Sterling, VA, Avenge provides flight operations and training services to U.S. government and commercial customers, including the U.S. Army and U.S. Special Operations Command (“SOCOM”).  Through its team of highly-trained and experienced pilots, flight operations managers, and aviation professionals, Avenge conducts global missions in support of high-priority Intelligence, Surveillance, and Reconnaissance (“ISR”) and Reconnaissance, Surveillance, Targeting, and Acquisition (“RSTA”) operations.  The Company’s core focus on delivering ISR and RSTA mission support is complemented by its expertise in pilot and maintenance training, as well as engineering, technical support, and logistics.

Since its founding in 1999, Avenge has leveraged its industry-wide relationships with key mission-focused leaders to provide quality support to DoD customers across the globe.  Serving both CONUS and OCONUS operations, Avenge has supported ISR missions in South America, the Middle East, Africa, and the Mediterranean.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

  • Healthy appetite for companies delivering mission-critical capabilities
  • Buyers place value on targets with a robust pipeline of new opportunities and numerous identified avenues for growth across a diverse customer base
  • Highly-trained team of experienced professionals maintaining intimate program knowledge viewed as desirable and attractive for customers with evolving mission requirements

 

Press Release

 

MAG Aerospace Acquires Avenge, Incorporated

Woodbridge, Virginia – November 1, 2017 – MAG Aerospace (MAG) has acquired Avenge, Incorporated (Avenge). This acquisition adds over 100 aviation specialists, system operators, and flight operations management professionals to MAG, enhancing MAG’s already robust Manned ISR Operations and Training capabilities.

Avenge, founded in 1999, is a Sterling, Virginia-based, veteran-owned aerospace company specializing in Manned ISR (Intelligence, Surveillance, Reconnaissance) Operations and Training. Avenge has amassed over 400,000 hours of fixed-wing ISR operations experience and also offers pilot and sensor operator flight training for US military personnel and foreign partners.

“We have admired Avenge for years as a recognized industry leader in providing Manned ISR services,” said Joe Fluet, MAG CEO. “Avenge’s proprietary training program for special mission pilots will allow MAG to provide even better service to our customers who are doing critical work around the world. We are proud to add Avenge’s team of experienced professionals to the MAG family as we continue to set the standard for ISR operations, manned and unmanned.”

About MAG Aerospace

MAG Aerospace, headquartered in Woodbridge, Virginia, is a leader in providing and enabling real-time situational awareness to help its customers to make the world smaller and safer. Private equity backed by the Clairvest Group, MAG Aerospace delivers full-spectrum ISR Services (operations, training, and technical services) and other specialty aviation to federal, international, civilian, and commercial customers around the world. In 2016, MAG’s team of 900+ professionals operated 140+ manned and unmanned special mission aircraft during more than 68,000 flight hours on 5 continents in support of our customers’ missions. For more information, visit www.magaero.com.

KippsDeSanto & Co. Advises BEI Precision Systems and Space Company, Inc. on its Sale to investment affiliates of J.F. Lehman & Company

KippsDeSanto & Co. is pleased to announce the sale of BEI Precision Systems & Space Company, Inc. (“BEI PSSC” or the “Company”), a subsidiary of InnoVista Sensors Ltd., a portfolio company of The Carlyle Group, PAI Partners, and Schneider Electric, to investment affiliates of J.F. Lehman & Company. BEI PSSC is a leading provider of precision positioning sensor technologies, which it delivers through advanced design, manufacturing, and testing for space, defense, and critical infrastructure applications. The Company’s product portfolio includes a range of highly accurate, reliable, and resilient instruments for use in the most rugged and extreme environments.

Headquartered in Maumelle, AR, BEI PSSC provides custom precision positioning sensors and instruments for sensitive mission-critical Programs of Record. The Company’s product portfolio includes scanners, optical encoder-based positioning systems, and precision accelerometers. The Company is the inventor of the optical encoder and has designed and manufactured critical systems such as the Hubble Space Telescope Fine Guidance System. Today, BEI PSSC provides critical engineering expertise and hardware to support the Spherical Situational Awareness on the Joint Strike Fighter, high resolution and accuracy hardware for the Joint Polar Satellite System and the Geostationary Operational Environmental Satellite, and advanced acceleration monitoring for aircraft, such as the Blackhawk. BEI PSSC’s team of highly-qualified engineers holds a unique combination of mechanical, electrical, optical, and software engineering expertise required to develop, through in-house research & development, some of the most accurate positioning and sensor instruments in the market. Combining industry-leading engineering capabilities and domain knowledge of customer requirements has enabled BEI PSSC to greatly expand and influence U.S. space and defense capabilities.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

  • Companies holding single-source status on well-funded, mission-critical Programs of Record and enduring platforms are in high demand
  • Significant value continues to be derived from companies with deeply-embedded relationships with key aerospace and defense customers, especially those aligned with favorable budget forecasts
  • Both strategic and private equity buyers remain actively focused on acquiring high-end design and manufacturing capabilities built on a foundation of proprietary processes and trade secrets
  • Private equity firms with a keen understanding of the aerospace and defense market are able to leverage today’s strong credit market to be competitive with strategic buyers

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and government technology companies. For more information on KippsDeSanto & Co., please visit  www.kippsdesanto.com.

 

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

 

Press Release

J.F. Lehman & Company Acquires BEI Precision Systems & Space Company

NEW YORK – J.F. Lehman & Company (“J.F. Lehman”), a leading middle-market private equity firm focused on the defense, aerospace and maritime sectors, is pleased to announce that an investment affiliate has acquired PSSC Holding Co. and its wholly owned subsidiary, BEI Precision Systems & Space Company, Inc. (collectively, “BEI PSSC” or the “Company”).

BEI PSSC is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing, and testing for reliable and resilient products and systems. The Company’s core product lines, which are used primarily in mission-critical defense and space applications, include optical encoder-based positioning systems, scanners for situational awareness requirements and precision accelerometers. BEI PSSC is headquartered in Maumelle, Arkansas, and has a longstanding track record of technological innovation, with corporate roots dating back to 1862.

“BEI PSSC has an exceptional reputation for providing unique and highly accurate sensors to prime contractors and system providers in the defense and aerospace markets,” said Steve Brooks, Partner at J.F. Lehman. “The Company has a longstanding history supporting many important programs. We look forward to partnering with management to support the continued growth and future success of the business through organic development and complimentary bolt-on acquisitions.”

Jones Day provided legal counsel to J.F. Lehman. Miller & Chevalier advised in the area of government contracting and import/export and defense security compliance. Debt financing for the transaction was arranged by BNP Paribas and Barings. Evercore Partners provided financial advisory services to J.F. Lehman in connection with the acquisition and KippsDeSanto & Co. advised BEI PSSC.

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KippsDeSanto & Co. Advises Seaward Marine Services, Inc. on Sale to MHI Holdings, LLC

KippsDeSanto & Co. is pleased to announce the sale of its client, Seaward Marine Services, Inc. (“Seaward Marine” or the “Company”) to MHI Holdings, LLC, a portfolio company ofStellex Capital Management. Seaward Marine is a leading provider of underwater hull cleaning and ship husbandry services, including underwater painting, inspections, repair sand maintenance, testing, and other specialized diving services, primarily to the U.S. Navy, as well as other commercial and government customers.

Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward Marine’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35years. The Company’s reputation is established on a foundation of experience, deep domain knowledge and technical expertise, and an emphasis on safety and accountability. Seaward Marine was recently awarded another five-year, multimillion dollar contract with Naval Sea Systems Command worldwide underwater hull cleaning and ship husbandry services. The Company has developed extensive Intellectual Property and robust tools to complement its unique offerings, including advanced processes, procedures, and techniques surrounding cleaning and safety, rigorous training regimens and continuing education for Seaward personnel, and a proprietary database designed to store hull readings, diagnostics, high-quality imaging, and vulnerability reports.

We believe this transaction demonstrates several key trends in the government technology solutions M&A environment:

  • Strategic acquirers remain focused on acquisitions of companies with unique skillsets and proprietary processes and intellectual property
  • Value continues to be placed on companies with established relationships withdefense and commercial customers, especially those aligned with evolving budget trends
  • Continued interest in transformational acquisitions that provide synergies and presentlong-term growth opportunities with enhanced profitability

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and government technology companies.  For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

 

Press Release

PE-backed MHI acquires Seaward and AME

NORFOLK, Va. – March 31, 2017 – MHI Holdings, LLC (“MHI”) announced today that it has completed the acquisitionsof Seaward Marine Services, Inc. (“Seaward”) and Accurate Marine Environmental, Inc. (“AME”). These are the first twoacquisitions since affiliates of the private equity firm Stellex Capital Management LP (“Stellex”) acquired MHI ShipRepair in 2015. The acquisitions mark the first expansion of the MHI business, broadening both the range andgeographic scope of services offered by the Company.

  • Seaward is a leading provider of underwater hull cleaning and ship husbandry services, including underwaterpainting, inspections, repairs and maintenance, testing, and other specialized diving services, primarily to theU.S. Navy, as well as other commercial and government customers. Seaward has delivered mission criticalsupport to the U.S. Navy for over 35 years out of its Norfolk-based headquarters and offices in Florida, California,Hawaii and, Japan.
  • AME performs bilge and tank cleaning, chemical cleaning, gas free engineering, and the removal of hazardousand non-hazardous materials for the U.S. Navy and commercial industries. AME, also headquartered in Norfolk,VA, performs work primarily across the East Coast of the U.S., including Virginia and Florida.

Tom Epley, Chief Executive Officer of MHI, commented, “Both Seaward and AME are world-class businesses that we have worked with and respected for many years. These additions to the MHI platform will allow us to better serve the needs of our customers both domestically and abroad.” Mr. Epley further commented, “Seaward and AME add capabilities that will augment MHI’s existing business, allowing the opportunity to bid on a wider variety of projects. In addition, both acquisitions expand the geographic reach of the MHI organization outside the port of Norfolk, a key development in the growth of our Company.”David Waxman, Managing Director at Stellex stated, “We believe these acquisitions are important steps to expandingMHI’s capabilities as one of the U.S. Navy’s leading ship repair contractors. We look forward to continuing to build theMHI platform while working with Tom and the team to grow each of its businesses.”Both Seaward and AME will continue to be run by their respective management teams.

About MHI Holdings, LLC

Headquartered in Norfolk, VA with nearly 500 employees, MHI is a major marine repair and conversion contractor serving Commercial ship owners, the U.S. Navy, Military Sealift Command and Maritime Administration and operators worldwide. MHI’s shipyard and full service pier is located in Norfolk, Virginia. The Company has earned their well-regarded reputation by providing accurate job pricing, reliability, quality and economical ship repair services to its clients for over 33 years.

About Seaward Marine Services, Inc.

Founded in 1972, Seaward is a leading provider of underwater hull cleaning, inspection, and repairs to the U.S. Navy and Commercial clients including underwater welding and painting. Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35 years.

About Accurate Marine Environmental, Inc.

AME was founded in 1994 and rapidly became a leader in the Hampton Roads area as an environmental service company providing marine and industrial tank and bilge cleaning services, environmental remediation, waste transportation and waste disposal services. Over the last 20 years, AME grew into one of the largest employee owned and operated environmental service companies in Norfolk. AME has a water front facility on the Elizabeth River complete with a 350’+ pier and state of the art water treatment plant.

About Stellex Capital Management LP

Stellex is a private equity manager that invests in and oversees US and European corporate assets. Stellex’s focus is on middle-market companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth for its portfolio companies.

KippsDeSanto & Co. Advises ISP Optics Corporation on Sale to LightPath Technologies, Inc.

KippsDeSanto & Co. is pleased to announce that the sale of its client, ISP Optics Corporation (“ISP” or the “Company”) to LightPath Technologies, Inc. (NASDAQ: LPTH), as previously announced on August 8, 2016, has closed. The Company is a leading manufacturer of advanced infrared optical components, coatings, and optical sub-systems for aerospace and defense, educational and government labs, as well as original equipment manufacturers.

Headquartered in Irvington, NY, with significant manufacturing operations in Riga, Latvia, ISP provides a full range of high performance infrared lenses and coating services used in sensors, military electro-optical products, and infrared imaging cameras. The Company’s broad portfolio of products reflects its expertise providing in-house manufactured Medium Wave Infrared (“MWIR”) and Long Wave Infrared (“LWIR”) lenses, as well as athermal lens systems used in cooled and un-cooled thermal imaging cameras. The Company has also developed advanced manufacturing processes, including Computer Numerical Control (“CNC”) grinding and polishing, optical contacting, coating technologies, continuous and conventional polishing, as well as state-of-the-art diamond turning capabilities. These proprietary in-house technical capabilities, coupled with advanced machinery and experienced technicians, allow ISP to serve its global customer base with optical products and sub-assemblies custom-tailored for diverse specification requirements.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

  • Strategic buyers remain focused on acquisitions that fill capability gaps around existing and future engagements, while also enabling the acquirer to expand its customer base through geographic expansion or increased scope of capabilities
  • Value continues to be placed on companies with attractive and established client relationships spread across strategically diverse end-markets
  • Continued interest in transformational acquisitions that provide revenue / cost synergies and present long-term growth opportunities alongside enhanced profitability

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and government technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

Nabco

KippsDeSanto & Co. Advises TeraLogics, LLC on its Sale to Cubic Corporation

KippsDeSanto & Co. is pleased to announce the sale of our client, TeraLogics, LLC (“TeraLogics” or “the Company”), to Cubic Corporation (“Cubic”). TeraLogics is a leading provider of real-time Full Motion Video (“FMV”) processing, exploitation, and dissemination (“PED”) products and solutions for the Department of Defense (“DoD”), Intelligence Community (“IC”), and commercial customers. The Company’s products sit at the center of the DoD’s FMV Intelligence, Surveillance, and Reconnaissance (“ISR”) dissemination architecture. Based in Ashburn, VA, TeraLogics architected, designed, developed, and currently supports the DoD’s enterprise Airborne ISR (“AISR”) video portal and dynamic multicast dissemination network. TeraLogics’ ability to develop real-time video analysis and delivery software for FMV is complementary to Cubic’s existing tactical communications portfolio, and establishes Cubic as a key player in the ISR FMV market.
TeraLogics’ flagship product, Unified Video® is the situational awareness (“SA”) solution for the DoD, IC, and various bilateral coalitions, and supports interactions across the entire AISR community. TeraLogics’ Unified Video® software provides multilayered, human-centered context to video by integrating geospatial data, collaborative data, human- or sensor-provided tags, previously archived video, and metadata with live, real-time streams. With deep and established satellite communications and ISR delivery expertise, TeraLogics is a leader in FMV ISR and has close relationships with the U.S. Unified Combatant Commands (“COCOM”), National Geospatial Agency (“NGA”), Defense Information Systems Agency (“DISA”), and various commercial customers.

We believe this transaction demonstrates several key trends in the Defense Technology and C4ISR M&A environment:

Buyers place premium value on companies with differentiated and innovative solutions in support of highly visible and critical C4ISR missions
Defense integrators seek strategic acquisitions to enhance depth of technology, proprietary solutions, and intellectual property to complement existing offerings
DoD and IC users continue to demand advanced video intelligence solutions for SA and real-time applications to manage the rapid ingest of video data
There is value in strong client relationships and embedded positions on mission-critical programs
KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

KippsDeSanto & Co. Advises Sensor Technology Systems, Inc. and Diffraction Ltd., wholly-owned subsidiaries of The O’Gara Group, Inc., on Sale to Steiner-Optik GmbH

KippsDeSanto & Co. is pleased to announce the sale of Sensor Technology Systems, Inc. (“STS”) and Diffraction Ltd. (collectively, the “Companies”), subsidiaries of The O’Gara Group, Inc. (“TOG”), to Steiner-Optik GmbH.  The Companies provide industry leading advanced situational awareness and intelligence, surveillance, and reconnaissance (“ISR”) solutions for the Department of Defense (“DoD”), Intelligence Community (“IC”), law enforcement, foreign government agencies, and select commercial customers.

STS (based in Beavercreek, OH), is a premier provider of mission-critical vision, beacon, and laser systems to support identification, surveillance, tagging, tracking, and locating, ultimately providing forward operators with decisive advantages in austere conditions, both day and night.  Diffraction (based in Burlington, VT), supports STS through high-end research and development capabilities, which serve to enhance existing STS solutions, as well as develop new products.  Together, the Companies have an established presence in the design and development of night vision systems, Heads Up Displays (“HUD”), and a suite of infrared imagers, illuminators, pointers, and thermal beacons.  The Companies continue to build upon extensive operational expertise supporting high-profile customers and covert Special Operations Forces (“SOF”) missions.  Through its partnership with Steiner-Optik GmbH, the Companies expect to deliver additional value to current customers, while expanding into emerging opportunities and adjacent markets with significant growth potential.

We believe this transaction demonstrates several key trends in the defense technology M&A environment:

  • Commercial buyers seeking to acquire high-end, proprietary defense technology products to complement existing solutions for use in commercial applications
  • Value continues to be placed on companies with differentiated technologies focused on ISR capabilities that improve situational awareness and enhance probability of mission success
  • Importance of entrenched relationships with a diverse, well-funded customer base that supports demanding missions (e.g., U.S. Special Operations Command)

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and technology companies.  For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

PRESS RELEASE

Beretta Holding Acquires Two Companies in U.S., STS and Diffraction Ltd.

  • The two U.S. companies sell highly specialized products and systems mainly utilized for night vision applications
  • The Group increases its presence in the United States, where it already generates more than 50% of revenues
  • The two acquisitions will be part of the Electro-Optics Division

Gardone Val Trompia (BS), January 4, 2016 – Beretta Holding, through its German subsidiary Steiner, announces the acquisition of STS, based in Beavercreek, Ohio (USA), and Diffraction Ltd, based in Burlington,  Vermont (USA), both held by The O’Gara Group. The companies offer leading edge solutions in the field of night vision and related technologies relying on the strength of a solid and multifunctional team of highly skilled engineers. The two acquisitions represent an important strategic step in increasing the Group’s product offering in the field of electro-optics.

STS and Diffraction’s products utilize advanced technology recognized worldwide and primarily used by Western countries’ special forces, including the United States (all branches of the US military, government and law enforcement agencies) to many other agencies around the world (including Canada, UK, France, Germany, Italy, France, Switzerland, Norway, etc.).

The acquisition was completed on December 31st using the Group’s own financial resources without any external funding.

STS and Diffraction allow a further strengthening of Beretta Holding into the electro-optics sector, which currently accounts for approximately 15% of the total revenue of the Group, with offerings that includes a range of products and solutions in the electro-optics field, including aiming devices, binoculars, laser pointers and portable illumination systems.

This partnership is expected to drive a significant increase of technology and production synergies in the design and marketing of new products and solutions in an industry characterized by a high technological content, where the Group will continue to analyze the possibilities of further growth and integration.

An additional strategic benefit of the transaction for the Beretta Group is the ability to strengthen its presence in the US, where the Group currently generates more than 50% of sales and where investments for the transfer of the activities of Beretta USA to a new production facility located in Tennessee are currently being completed.

Pietro Gussalli Beretta, President and CEO of Beretta Holding, said: “Through the acquisition of STS and Diffraction, our Group achieves a fundamental step in its growth plan to achieve a leadership position in the field of electro-optics. We will continue our process of internationalization and investment in R&D to support the growth of all the companies of the group and to design products and solutions that are always innovative and competitive”.

Beretta Holding

Beretta Holding SpA is an international industrial group (94% of turnover is made abroad), with approximately 3,000 employees, active in the production and distribution of light firearms, used for sports, hunting and self-protection, clothing, accessories and advanced systems in the field of electro-optics.  It is based in Gardone Val Trompia (Brescia) and coordinates the activities of 26 companies operating in the main European countries, the United States (where it accounts for about 50% of sales) and in the major countries of other continents. Since inception to date the turnover and the number of subsidiaries is growing as a result of a careful policy of investments and strategic acquisitions, carried out in order to gradually expand the range of products offered and to ensure a direct commercial presence in the most important markets where it operates. Consolidated revenues in 2014 amounted to Euro 623 million, EBITDA to Euro 89.3 million and net income to Euro 40 million.

For more information:

Moccagatta Associati

8645.02 8645.1695 – 02 8645.1419

E: segreteria@moccagatta.it

KippsDeSanto & Co. Advises ForceX, Inc. on its Sale to L-3 Communications

KippsDeSanto & Co. is pleased to announce the acquisition of our client, ForceX, Inc. (“ForceX” or the “Company”), by L-3 Communications (“L-3”) (NYSE:LLL). ForceX is an industry leader in Intelligence, Surveillance, and Reconnaissance (“ISR”) software development and hardware integrations, and geospatial application technology programs, supporting the Department of Defense (“DoD”), other civilian and government agencies, and security organizations.

Based in Nashville, TN, ForceX is a leading developer of highly-customized mission-critical solutions to support navigation, surveillance, tracking, command and control (“C2”) solutions, increasing situational awareness, forward operator safety, and the probability of mission success. ForceX has established itself as a leader in the custom software solutions space, boasting deep operational expertise supporting mission-execution platforms, battlefield and weapons management systems, intelligence exploitation, and covert Special Operations Forces (“SOF”) missions.  Through its partnership with L-3, ForceX expects to deliver even greater value to its customers, as well as pursue additional growth areas.

We believe this transaction demonstrates several key trends in the defense M&A environment:

  • Buyers continue to place premium value on companies with differentiated ISR software capabilities that improve situational awareness and operator decision-making
  • Importance of relationships with mission-critical programs and customers that support the most sensitive and classified missions (e.g., U.S. Special Operations Command)
  • Major defense integrators continue to seek revenue synergies and improve market sector positioning through selective M&A activity

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

L-3 Acquires ForceX, Inc.

– Industry Leader Specializing in ISR Software Development and Geospatial Application Technology Programs –

NEW YORK–(BUSINESS WIRE)–Oct. 13, 2015– L-3 Communications (NYSE:LLL) announced today that on October 13, 2015 it acquired ForceX, Inc., which the company has renamed L-3 ForceX. L-3 ForceX will be incorporated into L-3’s Integrated Sensor Systems (ISS) sector within the Electronic Systems business segment. Terms of the transaction have not been disclosed, but the acquisition is expected to be immediately accretive.

Based in Nashville, Tenn., L-3 ForceX is an industry leader specializing in ISR mission management software and geospatial application technology programs, offering an array of advanced products, including cueing system software, hardware and video algorithms, and wide-area sensor integration solutions and software. The company’s proprietary processing, exploitation and dissemination (Tactical PED) capability provides an integrated tactical operational picture, allowing users to make critical decisions in real time. The business also provides training courseware, materials and turnkey classroom training solutions for its customers and currently supports several key Department of Defense ISR initiatives and classified programs. Its customer base includes the U.S. Air Force, U.S. Special Operations Command, the Naval Surface Warfare Center and a variety of DoD agencies. The business also has existing relationships with several defense prime contractors as well as numerous L-3 business units. L-3 ForceX is a highly customer-focused business that is expected to accelerate the overall growth prospects of the ISS sector.

“We have been strategically repositioning our portfolio by adding new capabilities that are aligned with our customers’ priorities, and we are pleased to announce this acquisition, which furthers this objective,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “ForceX complements L-3’s core business, enhancing our product and system capabilities to compete in new markets, and expands our customer base.”

L-3 ForceX is expected to add approximately $30 million in sales for the year ending December 31, 2016. Goodwill and other intangible assets from this acquisition are expected to be deductible for income tax purposes.

Headquartered in New York City, L-3 employs approximately 45,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. The company reported 2014 sales of $12.1 billion.

To learn more about L-3, please visit the company’s website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s website and is readily accessible.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company’s Safe Harbor Compliance Statement for Forward-Looking Statements included in the company’s recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.

KippsDeSanto & Co. Advises Arkansas Power Electronics International, Inc. on its Sale to Cree, Inc.

KippsDeSanto & Co. is pleased to announce the sale of our client, Arkansas Power Electronics International, Inc. (“APEI” or “the Company”), to Cree, Inc. (“Cree”).  APEI develops, designs, and manufactures high performance power electronics and wireless systems, including motor drives, inverters, power modules, and DC / DC converters.  APEI has been a recognized industry leader in power modules and power electronics applications.   Based in Fayetteville, AR, APEI sits at the center of the SiC power module market, with a focus on providing high performance modules and systems and driving a market shift from traditional silicon-based power electronics towards SiC components.

We believe this transaction demonstrates several key trends in the electronics M&A environment:

  • Attractiveness of proprietary, differentiated technologies
  • Strategic acquisition to enhance technology depth, gain customer reach, and vertically integrate manufacturing to quickly capitalize on a rapidly growing market
  • Growing demand for high performance, highly durable power electronics components for aerospace, defense, and commercial markets

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace / defense and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

DURHAM, N.C., July 9, 2015 – Cree, Inc. (Nasdaq:  CREE), a market leader in silicon-carbide (SiC) power and RF products  today announced the acquisition of APEI, a global leader in power  modules and power electronics applications. Combining two highly complementary innovators, the acquisition enables Cree’s Power and RF  business to extend its leadership position and help to accelerate the  market for high-performance, best-in-class SiC power modules.

This acquisition strengthens Cree’s market-leading position for SiC power electronics, infusing the Power and RF business with additional  intellectual property and applications expertise at the systems level  from APEI. The companies’ shared mission to deliver the industry’s most  innovative SiC power products has already led to successful  collaboration on multiple government contracts. In 2014, the  co-development of a High-Performance Silicon Carbide-based Plug-In  Hybrid Electric Vehicle Battery Charger on an ARPA-E program resulted in  an R&D 100 award, recognizing the 100 most innovative technology  advancements of the year.

“Adding this expert team of innovators and portfolio of patents will enable us to further disrupt and expand the market,” said Frank Plastina, executive vice president, Cree Power and RF. “Extending our  research and development capabilities with APEI, a leader in wide bandgap power R&D, will help us accelerate delivery of a full spectrum of SiC power modules to meet customer requirements for performance and cost.”

“Joining forces with the market leader in silicon-carbide power gives  us an opportunity to commercialize our products faster,” said Dr.

Alex  Lostetter, president and CEO of APEI. “This ideal combination of chip  technology and packaging will give us first-mover advantage, helping us  to set the industry standard for power modules.”

The APEI team, now Cree Fayetteville, Inc., will continue to be based  in Fayetteville, AR., and will operate as part of Cree’s Power and RF  business. Under the terms of the agreement, Cree will acquire APEI in a  merger transaction. The transaction is not targeted to have a material  impact on Cree’s fiscal 2016 earnings.

About Cree, Inc.

Cree is leading the LED lighting revolution and making energy-wasting  traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading  innovator of lighting-class LEDs, LED lighting and semiconductor products for power and radio-frequency (RF) applications.

Cree’s product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree® products are driving improvements in applications such as general illumination, electronic  signs and signals, power supplies and solar inverters.

KippsDeSanto & Co. Advises Kutta Technologies, Inc. on its Sale to Sierra Nevada Corporation

KippsDesanto & Co. is pleased to announce the acquisition of our client, Kutta Technologies, Inc. (“Kutta” or the “Company”), by Sierra Nevada Corporation (“SNC”).   Kutta is a high-tech designer, developer, and manufacturer of C4ISR software and hardware applications supporting the Department of Defense (“DoD”), leading defense industry prime contractors, and commercial customers.  Kutta has created a leading suite of solutions that allow for advanced Unmanned Aerial Systems (“UAS”) command and control (“C2”) integration of UAS into the National Airspace System (“NAS”).  This acquisition provides a complementary platform of UAS solutions to SNC’s expanding multi-mission ISR products and services.

Based in Phoenix, AZ, Kutta is a leading developer of mission-critical C2 UAS solutions aimed at improving situational awareness, forward operator safety, the probability of mission success, and communication links.  Kutta’s UAS products and solutions solve UAS C2 problems with licensable software components and hardware products.  For example, Kutta has designed and fielded a proprietary solution that provides a field-operator with a system to safely and autonomously route multiple UAS and control on board sensors.  The Company’s products are designed to meet The North Atlantic Treaty Organization’s (“NATO”) Standardization Agreement 4586 standards and the Federal Aviation Administration (“FAA”) DO-178C guidelines.  Kutta has also developed proprietary solutions to address manned / unmanned teaming (UAS control from the cockpit of manned aircraft).  Additionally, Kutta is a leader in rugged and survivable communications systems crucial to first responders and the mining industry, holding a Part 23 Mine Safety and Health Administration (“MSHA”) certification for its Digital Radio for Underground Miners (“DRUM”) radio system. Through its partnership with SNC, Kutta expects to deliver even greater value to its customers, as well as pursue additional growth areas.

We believe this transaction demonstrates several key trends in the defense M&A environment:

  • Value continues to be placed on next-generation UAS and related C4ISR solutions in support of mission-critical programs
  • Growing demand for highly-specialized solutions addressing UAS NAS integration for both commercial and defense applications
  • Buyers looking to acquire proprietary technology and intellectual property to complement and expand upon existing solutions

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace / defense and government technology solutions companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

Sierra Nevada Corporation Acquires Kutta Technologies, Inc. to Expand its Unmanned Technologies

Sierra Nevada Corporation (SNC) is proud to announce the successful acquisition of its newest wholly-owned subsidiary, Kutta Technologies, Inc. (Kutta) located in Phoenix, Arizona.

SPARKS, Nev. (PRWEB) April 23, 2015 – Sierra Nevada Corporation (SNC) is proud to announce the successful acquisition of its newest wholly-owned subsidiary, Kutta Technologies, Inc. (Kutta) located in Phoenix, Arizona. Kutta is a leader in Unmanned Technologies with specialized capabilities in command/control (C2), manned-unmanned teaming, visualization and airspace management/deconfliction. The company will continue its operations in Phoenix, while supporting SNC’s Integrated Missions Systems (IMS) business area in both its Hagerstown, Maryland and Huntsville, Alabama locations.

“We’re excited to have Kutta, with its excellent management team join the SNC family,” said SNC President Eren Ozmen. “With 15 years of experience in unmanned systems, Kutta brings a wealth of exciting technologies and capabilities to greatly expand our technical offerings. The acquisition will also allow Kutta’s products to be exposed to a much larger audience through SNC.”

SNC’s IMS business area currently provides world-class aviation integration, intelligence, surveillance and reconnaissance, and unmanned integration. This acquisition builds upon a long-standing, successful working relationship between the two companies. It will expand SNC’s capabilities and products, providing customers with a comprehensive set of unmanned system control technology, magnetic wave radios, manned-unmanned teaming technologies and national air space deconfliction technology.

“Kutta possesses a robust intellectual property portfolio which positions it at the forefront of the Unmanned Aerial Systems (UAS) C2 communications and visualization technologies marketplace,” said Tim Owings, corporate vice president of SNC’s IMS business area. “SNC’s relationship with Kutta has proven to be very collaborative. We look forward to a prosperous future together.”

“We are very excited to be a part of the SNC IMS group,” said Doug Limbaugh, former CEO of Kutta Technologies. “Prior to this acquisition, we worked with SNC very successfully on multiple projects and found their leadership and engineering teams to be first class. Now as part of a wholly-owned subsidiary of SNC, we know that together we can grow our UAS and communications products to a whole new level.”

Kutta UAS products and solutions solve UAS C2 problems with licensable software components and hardware products. The company’s products are designed to meet The North Atlantic Treaty Organization’s (NATO) Standardization Agreement 4586 standards and the Federal Aviation Administration (FAA) DO-178C guidelines. Kutta is also a leader in rugged and survivable communications systems crucial to first responders and the mining industry, holding a Part 23 Mine Safety and Health Administration certification for its Digital Radio for Underground Miners (DRUM) radio system.

About Sierra Nevada Corporation
Sierra Nevada Corporation (SNC), headquartered in Sparks, Nevada, is among the “World’s Top 10 Most Innovative Companies in Space.” Over the last 30 years, under the leadership of President Eren Ozmen and CEO Fatih Ozmen, SNC has become one of America’s fastest-growing private companies and the Top Woman-Owned Federal Contractor in the United States. With a workforce of over 3,000 personnel, SNC now has 32 locations in 18 states and three locations in Europe. SNC has a reputation for rapid, innovative, and agile technology solutions in electronics, aerospace, avionics, space, propulsion, micro-satellite, aircraft, and communications systems.

SNC has six unique business areas that are dedicated to providing leading-edge solutions to its dynamic customer base. SNC has a proven track record of success spanning more than five decades. It is focused on providing its customers with the very best in diversified technologies and continues to focus its growth on the commercial sector through internal advancements in dual-use applications and outside acquisitions including the emerging markets of telemedicine, Cyber and net-centric operations.

For more information on SNC visit http://www.sncorp.com and follow us at Facebook/Sierra Nevada Corporation. Sierra Nevada Corporation and SNC are trademarks of Sierra Nevada Corporation.

About Kutta Technologies
Kutta Technologies (Kutta) is a high-tech research & development, manufacturer and supplier of command-control-communications software applications, interconnects, components and subsystems for Department of Defense, Department of Homeland Security and National Institute of Occupational Safety and Health programs. Kutta designs and develops innovative communication and visualization technologies that revolutionize industries. We employ highly-experienced mathematicians, physicists, and electrical and software engineers, and have created a culture and environment for delivering high-impact results. For more information on Kutta visit http://www.kuttatech.com.