Cubic Acquires DTECH LABS
- Acquisition Strengthens Cubic's Secure Communications Business and Networking Capabilities
Cubic Corporation (NYSE: CUB) today announced the acquisition of DTECH LABS, Inc. (DTECH), a leading provider of modular networking and baseband communications equipment based in Sterling, Va., for up to $114.5 million, including $15 million of contingent consideration and subject to the terms of the stock purchase agreement.
“DTECH is the first step in our near-term strategy to build a niche $100-200 million C4ISR business generating mid-teen EBITDA margins. DTECH represents a value investment and adds networking capability to our secure communications business,” said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. “We welcome the DTECH team to Cubic and look forward to working with them to leverage our combined capabilities, talent, technology, innovation and outstanding customer relationships.”
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DTECH’s ruggedized communications portfolio includes tactical and strategic networking products for portable, man-packable, vehicular and airborne applications. DTECH is an established supplier for Special Operations Command (SOCOM), the U.S. Marine Corps, and other government and commercial customers. Cubic anticipates this acquisition will result in significant growth opportunities.
“We look forward to being part of the Cubic family and continuing to grow and serve our important customers,” said Bob Denson, president of DTECH. “We believe this is a great strategic and cultural fit with the continued opportunity to innovate for our combined customers.”
The transaction is expected to be accretive to earnings beginning in fiscal year 2016.
Source : Cubic Corporation (NYSE: CUB) - view original press release