KippsDeSanto & Co. Advises Aitech Rugged Group on its Sale to FIMI Opportunity Funds
KippsDeSanto & Co. is pleased to announce the sale of our client, Aitech Rugged Group (“Aitech” or the “Company”) to FIMI Opportunity Funds (“FIMI”). Aitech is a leading supplier of rugged, hi-tech embedded computers for mission-critical aerospace, defense, and space programs worldwide optimized for harsh environments, in support of leading defense industry prime contractors and major global aerospace platform integrators.
Headquartered in Chatsworth, California, with operations in Herzliya, Israel, Aitech has established a reputation as a go-to supplier for advanced, high-performance, aerospace, defense, and space-qualified embedded computing and custom Commercial Off-The-Shelf Products (“COTS”) products used for Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (“C4ISR”) and signal and sensor processing. Aitech’s industry-leading engineering capabilities combine advanced, customized COTS, custom hardware, and software to provide integrated systems to meet evolving customer needs and mission requirements. The Company’s unique customization model positions Aitech and its customers with the ability to continuously stay at the leading-edge of technological advancement, significantly reducing risk, time-to-market, and obsolescence for highly-visible, mission-critical programs.
The acquisition of Aitech provides FIMI with a well-established defense electronics platform and global customer base. FIMI intends to make an immediate internal investment into Aitech to enable the Company to capitalize on increasing demand for its products and create a highly-scalable, market-dominant rugged embedded computing solutions provider. The acquisition represents another step in FIMI’s plan to make investments in non-Israeli companies and centralize their operations in Israel. Aitech represents the fourth investment made by FIMI since November 2017 in a series of defense electronics / satellite businesses. FIMI plans to grow the Company’s business with a focus on business development, research, and sales and marketing initiatives.
We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:
- The global defense, aerospace, and space technology market remains robust as non-US firms continue to seek cross-border opportunities for strategic access
- High-end signal processing and computing systems for C4ISR mission and space platforms remains a key priority for buyers
- Companies with differentiated solutions and entrenched positions on key, well-funded platforms attract greater value in the M&A market
August 02, 2018
Israel-based private equity firm FIMI Opportunity Funds is acquiring defense electronics company Aitech Rugged Group Inc. for $30 million, the firm announced Thursday.
Part of the sum will be used to buy Aitech from its current owners, a group of Netherlands-based investors, and the rest will be infused into the company to promote operational growth, the firm said in a statement.
Headquartered in Chatsworth, California, Aitech develops and manufactures commercial and military embedded computing solutions for the military and space industries. The company has several subsidiaries, including Aitech Systems Ltd., located in Tel Aviv suburb Herzliya, which employs 70 people out of Aitech’s 170 employees. The company reports annual revenues of $30 million-$40 million a year, and lists the Boeing Company and Lockheed Martin as customers.
In November 2017, Fimi acquired a controlling stake in Israel-based ORBIT Communication Systems Ltd., a company developing and manufacturing satellite communication systems, in Israel-based satellite imaging services company ImageSat International N.V., and in Israel-based Gilat Satellite Networks Ltd.
Fimi intends to support Aitech in both the financial and the administrative aspects, to bring the company’s full growth potential to fruition, said Fimi senior partner Gillon Beck, who led the acquisition, in a statement. The acquisition is another step in Fimi’s plan to make investments in non-Israeli companies and centralize their operations in Israel, Mr. Beck explained, adding that Fimi intends to unify Aitech’s various branches and relocate the center of its administration to Israel.
Aitech expects to see a significant increase in the scope of its operations in the next few years, CEO Moshe Tal said in a statement.