Cubic Corporation (NYSE: CUB) has acquired from NEK Advanced Securities Group, Inc. the operating assets of its NEK Special Programs Group, LLC subsidiary, their Special Operation Forces training business based in Fayetteville, NC and Colorado Springs, Colo. The all-cash transaction closed on December 14, 2012 with a total consideration of $52 million subject to the terms of the purchase agreement.
The assets are being acquired by NEK Services, Inc., a wholly owned subsidiary of Cubic Corporation, and will operate under the leadership of Jim Balentine, President of Cubic Mission Support Services. The more than 200 highly skilled and experienced operational and technical experts of NEK’s Special Operations Forces training business will become employees of Cubic and significantly expand the company’s current knowledge base in advanced tactical training, surveillance /counter surveillance, mission planning, and personnel recovery.
“The NEK acquisition will help solidify and expand Cubic’s highly specialized, mission critical capabilities focused on the national security market,” said Jay Thomas, Senior Vice President of Finance and Corporate Development for Cubic Corporation. “NEK is one of the few private contractors specializing in mission critical training and direct support activities for the United States Special Operations Command, Joint Special Operations Command and Theater Special Operations Command units,” he added.
“NEK is recognized for its record of unmatched experience and achievement in support of the Special Operations Forces community,” Jim Balentine, President of Cubic Mission Support Services said. “We see many synergies associated with Cubic’s breadth of technologies and service offerings, and expect to further expand our business through these combined resources. This acquisition is in line with the Pentagon’s strategic goal of increasing special forces training to meet the needs of reduced military spending,” he said.
NEK is a leading provider of advanced and specialized courses for the United States Special Operations Command. The leadership team consists of former Special Forces specialists averaging over 20 years of experience. Two key members of NEK’s senior leadership team, Bo Todd and Jeff Keers have been named as executives of the new Cubic subsidiary. NEK Advanced Securities Group founders and Chief Executive Officers Bruce Parkman and Tony Porterfield will support the continued success of NEK Services, Inc. by serving as consultants to Cubic.
“By selling our NEK Special Programs Group subsidiary to Cubic, NEK has found a great company to carry on our history of providing our country’s elite service personnel with exceptional training and support,” said Tony Porterfield. “Bruce and I look forward to helping Cubic continue to grow the Special Operations Forces business knowing that our dedicated and unparalleled employees will be well taken care of as part of the Cubic family of companies.”
Source: Cubic Corporation (NYSE: CUB)
Date: Dec 18, 2012