KippsDeSanto & Co. Industry Week in Review – August 25, 2023

Industry Week in Review – August 25, 2023

M&A Transactions

AeroVironment (NASDAQ: AVAV) has agreed to acquire Tomahawk Robotics, a provider of AI-enabled robotic control systems, particularly the Kinesis Ecosystem, an AI-enhanced and open architecture common control system that seamlessly integrates the network of battle-proven unmanned expeditionary vehicles, sensors, and third-party software onto an integrated system delivering targeted situational awareness and precision strike capabilities for human-machine teams across the battlespace. The transaction is valued at $120 million.

Aretum, LLC, a portfolio company of Renovus Capital, has acquired Artemis Consulting, Inc., a provider of management consulting, mission support, and technology solutions for private sector and U.S. Federal Government markets. Terms of this transaction were not disclosed.

Converged Security Solutions, LLC, a portfolio company of Hillcrest Holdings, has acquired Solutions by Design II, LLC, a provider of cybersecurity, development, security, and operations (“DevSecOps”), and cloud solutions for private sector and U.S. Federal Government civilian and healthcare markets. Terms of this transaction were not disclosed.

Forward Slope Incorporated, a portfolio company of Trive Capital, has acquired Hypergiant Industries, a provider of AI-enabled, cloud-based command and control technologies and deployed solutions in addition to a world-class core geospatial data visualization and actions platform which applies real-time threat analysis, makes artificial intelligence (“AI”) generated recommendations, and delivers intelligent insights across all domains. Terms of this transaction were not disclosed.

Forward Slope Incorporated, a portfolio company of Trive Capital, has acquired SoarTech, a provider of advanced artificial intelligence (“AI”) solutions to address complex Department of Defense (“DoD”) mission requirements. Terms of this transaction were not disclosed. KippsDeSanto & Co. acted as financial advisor to SoarTech.

H.I.G. Capital has acquired Ascent Global Logistics, a portfolio company of Elliot Investment Management, a provider of technology-enabled, expedited logistics and supply chain services enabling complex, time-critical logistics requirements in on-demand ground and air expedited logistics solutions and other value-added transportation services serving multinational leaders in aerospace, mobility, manufacturing, technology, and related industries globally. Terms of the transaction were not disclosed.

MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI) has agreed to acquire the Radio Frequency (“RF”) Business of Wolfspeed, Inc. (NYSE: WOLF), a provider of RF technology optimized with gallium nitride (“GaN”) on silicon carbide (“SiC”) products with GaN wafer fabrication capabilities competitively positioned for next-generation military communications, telecommunications infrastructure, and related commercial applications. The transaction is valued at $125 million.

Michael Baker International, a portfolio company of DC Capital Partners, has acquired Tidal Basin Government Consulting, LLC, a provider of enterprise and community development solutions to private sector and U.S. federal government markets. Terms of this transaction were not disclosed.

Owl Cyber Defense Solutions, LLC, a portfolio company of DC Capital Partners, has acquired Big Bad Wolf Security, LLC, a provider of next generation cloud infrastructure security for private sector and U.S. federal government commercial and defense markets. Terms of the transaction were not disclosed.

RBC Bearings, Inc. (NYSE: RBC) has acquired the Business Assets of Specline, Inc., a provider of precision bearings using proprietary manufacturing processes to produce standard and custom configuration precision spherical bearings, rod ends, and journal bearings with approvals on over 4,000 parts for the commercial and defense aerospace markets. The transaction is valued at $18.7 million.

Sidus Space (NASDAQ: SIDU) has acquired Exo-Space, a provider of edge artificial intelligence / machine learning (“AI / ML”) space-hardened hardware and resilient software for applications with adaptable, proprietary, hardware-agnostic software enabling the upload, exchange, and continuous improvement of analytics of onboard payloads in line with increasing market demand for flexibility and customization in satellite missions and data collection. The transaction is valued at $0.5 million.

The Parsons Corporation has acquired Sealing Technologies, Inc. a provider of cybersecurity solutions across defensive cyber operations, critical infrastructure network protection, and secure data management for private sector and U.S. federal government defense markets. The transaction is valued at $200 million.

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KippsDeSanto & Co. Industry Week in Review – August 11, 2023

Industry Week in Review – August 11, 2023

M&A Transactions

Arcfield, a portfolio company of Veritas Capital, has acquired Strategic Technology Consulting, LLC, a provider of full-spectrum model-based systems engineering (“MBSE”) and digital engineering services and solutions for an array of commercial customers, U.S. defense agencies, and defense prime contractors. Terms of the transaction were not disclosed.

Airshare has agreed to acquire the Aircraft Management Business of Wheels Up (NYSE: UP), a provider of on-demand, global private aviation solutions in the U.S. with a diverse fleet offering membership programs, charter, aircraft management services, whole aircraft sales, unique commercial travel benefits and freight, safety and security solutions, and managed services to individuals, industry, government, and civil organizations. Terms of the transaction were not disclosed.

Frontgrade Technologies, a portfolio company of Veritas Capital, has acquired Aethercomm, Inc., a provider of high-power radio frequency (“RF”) solid state power amplifiers (“SSPAs”), high-power RF switches, and transceivers / receivers used in electronic warfare, radar, communications, and space applications supporting mission-critical platforms for marquee customers across the defense and space electronics markets. Terms of the transaction were not disclosed. KippsDeSanto & Co. acted as financial advisor to Aethercomm, Inc.

KKR (NYSE: KKR), in cooperation with the Fuchs family (majority owner of non-floating shares), has agreed to acquire all outstanding, floating shares of OHB SE (XTRA: OHB), a provider of high-tech solutions and satellite systems for earth observation, navigation, telecommunications, science, and reconnaissance to the design and implementation of missions for space exploration and the development of equipment for human space flight. The transaction is valued at $840.7 million.

Photonics Foundries, Inc. has agreed to acquire the Defense Optoelectronics and Broadband Segment Product Lines, excluding Chips, of EMCORE Corp. (NasdaqGM: EMKR), a provider of ruggedized optoelectronic solutions including fiber optic transmitters, amplifiers, lasers and broadband solutions including RF over fiber optic links, passive devices, switching, signal distributions, and various components of integrated circuits that all meet the reliability and durability requirements of the U.S. government, aerospace, defense, and homeland security markets. Terms of the transaction were not disclosed.

Polytech Defense Spares, a portfolio company of PDI Group, has acquired Polytechnic Industries, a provider of fasteners, small gun parts, gears, light assemblies, and other critical spare gun parts as a supplier on the Department of Defense’s coveted Qualified Suppliers List of Manufacturers (“QSLM”) in support of U.S. military operations. Terms of the transaction were not disclosed.

Versar, Inc., a portfolio company of Kingswood Capital Management, has acquired Louis Berger Services (“LBS”), a subsidiary of WSP Global (TSX: WSP), a provider of operation and maintenance (“O&M”) services with expertise in aerial port operations, contingency logistics, ground support services, turnkey power and fueling solutions, heavy vehicle maintenance, and transportation asset maintenance at large, complex mission-essential defense installations and civilian facilities worldwide as a trusted partner to federal government agencies. Terms of the transaction were not disclosed.

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KippsDeSanto & Co. Industry Week in Review – July 28, 2023

Industry Week in Review – July 28, 2023

M&A Transactions

Ampaire has acquired Talyn Air, a provider of advanced electrical vertical take off and landing (“eVTOL”) technologies in flight with program awards across multiple U.S. Department of Defense (“DoD”) entities with future applicability in unmanned aerial commercial cargo. Terms of the transaction were not disclosed.

Bridger Aerospace (NASDAQ: BAER) has agreed to acquire Bighorn Airways, providing BAER with a fleet of 12 aircraft used for wildfire smoke jumping, special mission transport, and delivery for government customers. The acquisition will expand Bridger’s aerial firefighting services to new mission-critical areas and support the Department of Defense (“DoD”) in year-round logistics operations.The transaction is valued at $39.25 million.

Evantic, a portfolio company of Edgewater Capital Partners, has acquired Plastic Distributors and Fabricators (“PDF”), a provider of high-precision, complex parts with tight tolerances in demanding operating environments for covers, frames, housings, caps, filters, separators, gaskets, rings, wheels, and other structural components in the aerospace, defense, semiconductor, and related industrial markets. Terms of the transaction were not disclosed.

NewSpring Holdings, LLC has acquired Bridge Core, a provider of visual intelligence, cybersecurity, and other technical solutions to the U.S. government intelligence community. Terms of the transaction were not disclosed.

RSC2, Inc has acquired Navigant Systems, a provider of professional services for private sector and U.S. federal government aerospace, defense, and intelligence markets. Terms of the transaction were not disclosed.

Safran SA (ENXTPA: SAF) has agreed to acquire the Actuation and Flight Control Business of Collins Aerospace, a subsidiary of Raytheon Technologies (NYSE: RTX) and provider of high-technology actuation and flight control systems for commercial & military aircraft and helicopters. The transaction is valued at $1.8 billion.

TV Ammo, Inc. (“True Velocity”), formerly known as Breeze Holdings (NASDAQ: BREZ), has acquired Delta  P Design, a provider of innovative, American-made centerfire rifle suppressors and accessories using 3D metal printing technology that enables weapon performance through weight, sound, and flash reduction while maintaining optimal functionality and maneuverability with proven reliability on machine gun platforms for military and commercial applications. Terms of the transaction were not disclosed.

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KippsDeSanto & Co. Industry Week in Review – July 13, 2023

Industry Week in Review – July 13, 2023

M&A Transactions

Chickasaw Nation Industries has acquired Washington Business Dynamics, LLC, a provider of business optimization services, mission management, and strategic solutions to federal customers in the civilian and defense sectors. Terms of the transaction were not disclosed.

Enlightenment Capital has invested in Red Alpha, a provider of cybersecurity, cloud computing, enterprise, and large-scale distributed / virtual systems administration. Terms of the transaction were not disclosed.

 GEM Manufacturing, a portfolio company of CORE Industrial Partners, has acquired Coining Manufacturing (“Coining”) and Precision Machine Products (“PMP”), a provider of progressive die stamping, screw machining, computer numerical control (“CNC”) machining, and wire electrical discharge machining (“EDM”) manufacturing technologies to produce complex precision components from traditional and exotic metals for aerospace and defense, electronics, semiconductor, medical, and various industrial end users across numerous product types and demanding end-use applications. Terms of the transaction were not disclosed.

Innovative Solutions & Support (NASDAQ: ISSC) has acquired key assets and entered an exclusive license agreement related to several product lines of Honeywell International (NASDAQ: HON), providing ISSC with the right to manufacture, upgrade, and repair certain Inertial, Communication, and Navigation product lines from Honeywell inclusive of existing inventory, test, tooling, and other related equipment to enhance ISSC’s current offerings in the Air Transport, Military, and Business Aviation markets globally. Terms of the transaction were not disclosed.

Israel Aerospace Industries has acquired HELA Systems Private Limited, a provider of full maintenance, repair, and overhaul (“MRO”) product support, testing and technical services inclusive of annual maintenance contracts and supplying spares, with expertise in RF and microwave technologies primarily to Indian defense customers. Terms of the transaction were not disclosed.

Mission1st Group, Inc. has acquired Ardent Management Consulting, a provider of digital transformation, location intelligence, data science, and analytics solutions for the private sector and the U.S. federal government homeland security markets. Terms of the transaction were not disclosed.

RapidFlight has acquired the IP Portfolio of Local Motors, a provider of large format 3D printing and other additive manufacturing (“AM”) technologies with applicability to RapidFlight’s superior-quality unmanned aircraft systems, which surpass industry standards for time-to-market and scalability to bring cutting-edge technologies from the venture funded commercial sector to the national security and Department of Defense (“DoD”) space. Terms of the transaction were not disclosed.

The Swift Group Holdings LLC has acquired OPS Consulting, a provider of highly specialized mission critical technology services and solutions which support the U.S. Intelligence Community (IC) and Department of Defense (DoD). Terms of the transaction were not disclosed.

Thales (EPA: HO) has agreed to acquire Cobham Aerospace Communications, a subsidiary of Cobham Limited, a portfolio company of Advent International, and a provider of airborne avionics systems focused on cockpit communications in satellite communications (“SATCOM”), audio and radio management, antennas, lights, clocks, and man-machine interfaces enabling connectivity, communications, and navigation for the world’s leading manufacturers of commercial and regional aircraft, business jets, general aviation aircraft, military trainer, transport, and fighter aircraft, helicopters, and UAVs. The transaction is valued at $1.1 billion.

TPG (NASDAQ:TPG) has agreed to acquire the Global Government and Critical Infrastructure Business (“G2CI”) of Forcepoint, LLC, a provider of cybersecurity, information operations, and information assurance (“IO / IA”) to protect customers’ critical information and infrastructures from complex threats. The transaction is valued at $2.45 billion.

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