KippsDeSanto’s DealView — Top 10 Merger & Acquisition (“M&A”) Deals of the Quarter⁽¹⁾

KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended March 31, 2024.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Arcline Investment Management’s pending $1.8 billion acquisition of Kaman Corporation (”Kaman”). Headquartered in Bloomfield, CT, Kaman provides aircraft components and aerostructures for helicopters, fixed-wing, and unmanned aircraft, including the development of the KARGO UAV unmanned aerial system, and has performed subcontract work to restore, modify and support SH-2G Seasprite maritime helicopters. Kaman currently employs over 3,000 employees across its 18 domestic and international locations, serving aerospace, defense, industrial, and medical end markets. Kaman’s Engineered Products segment, which specializes in advanced proprietary aircraft bearings and components, generated 65% of Kaman’s $776 million in total revenue during FY 2024. The acquisition is intended to drive further growth through accelerated investments in both new product development and strategic acquisitions. This transaction demonstrates continued financial sponsor involvement in acquiring leading solutions providers of engineered components and subsystems to mission-critical markets. Kaman shareholders will receive $46.00 per share in cash, which represents a premium of approximately 105% over the closing share price on January 18, 2024, the last full trading day prior to the transaction announcement. This acquisition is expected to close in the first half of 2024, subject to customary closing conditions, including approval by Kaman shareholders and receipt of regulatory approvals.

The GTS deal of the quarter is BlueHalo, LLC’s (“the Company” or “BlueHalo”) acquisition of Eqlipse Technologies (“Eqlipse”), both of which are portfolio companies of Arlington Capital Partners. Headquartered in Herndon, VA, Eqlipse is known for its advanced solutions for the Department of Defense and the Intelligence Community spanning full-spectrum cyber and signals intelligence engineering, electronic warfare (“EW”), digital operations and identity management, and cutting-edge R&D. The acquisition of Eqlipse will further enhance BlueHalo’s ability to provide next-generation products and solutions to its customers by adding cutting-edge EW products and capabilities, adding significant depth within the Company’s current cyber franchise, expanding BlueHalo’s leading suite of open source intelligence offerings, and augmenting its advanced R&D capabilities. The combined entity will boast nearly 2,400 employees across 11 states, approaching $1 billion in annual revenue. This transaction signifies a significant step towards maintaining a competitive edge in delivering critical solutions for the national security and defense end markets. The deal was announced on February 13, 2024 – financial metrics have not been disclosed.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 200 industry transactions, KippsDeSanto & Co. is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.