Aerospace & DefenseQuarterly Report
Q1 2019Not affiliated with Jane’s Information Group
Quarterly UpdateQ1 2019
Aerospace & Defense
1 Executive Summary
2 About Janes Capital Partners
3 Top 5 M&A Deals
4 M&A Deal Volume
5 A&D Transaction Multiples
6-7 Public Valuation Summary
8 Deal Spotlight
9 Buyer Spotlight
10 Platform Overview
11-17 All M&A Transactions
There were 119 A&D deals announced in Q1 2019, which was adecrease from the number of deals announced during Q4 2018.Year-over-year quarterly transaction volume increased by 15.5%compared to the 103 deals announced during Q1 2018.
Average disclosed deal size during the quarter decreased to $596million compared to $1,302 million during Q4 2018.
The most active segments in terms of number of M&A deals were:
– Government Services, IT Services and Software (25 deals)
– Components & Subsystems (17 deals)
– MRO & Logistics (15 deals)
– Machined & Cast Parts (13 deals)
– Satellite, Satellite Services & Space Systems (7 deals)
The top 3 segments in terms of disclosed transaction values were:
– Satellite, Satellite Services & Space Systems ($7,335 million)
– Navy/Maritime ($5,863 million)
– Government Services, IT Services and Software ($1,909 million)
Number of Deals by Quarter
In this issue EXECUTIVE SUMMARY
1
30 2234 37 31 28
4127
37 30 3452
28
35 52
82 74
5982 64
79 6665
75
84
916574
116111
90
110105 106 103
95
109
136
119
0
20
40
60
80
100
120
140
160
16-1Q 16-3Q 17-1Q 17-3Q 18-1Q 18-3Q 19-1Q
Num
ber
of D
eals
Disclosed Not Disclosed
Note: Disclosed deals shown include transactions that disclose price, multiple or both
Quarterly UpdateQ1 2019
Aerospace & Defense
Contact Information
Stephen Perry Managing Director & CEOOffice: (949) 769-3323 Ext. 6901Mobile: (949) [email protected]
David JanesChairmanOffice: (949) 769-3323 Ext. [email protected]
Ilana GermaineDirectorOffice: (949) 769-3323 Ext. 6902Mobile: (910) [email protected]
19200 Von Karman Avenue, Suite 340, Irvine, California 92612T: (949) 769-3323 F: (949) 769-3327 www.janescapital.com
Janes Capital Partners gathers its data from sources it considers reliable; however, it does not guarantee the accuracy orcompleteness of the information provided within this publication. The material presented reflects information known to theauthors at the time this presentation was prepared, and this information is subject to change. Janes Capital Partners makesno representations or warranties, expressed or implied, regarding the accuracy of this material.
Securities offered through JCP Securities, Inc., a Registered Broker/Dealer and Registered Investment Advisor; MemberFINRA and SIPC. Janes Capital Partners, Inc. and JCP securities, Inc. are affiliated companies.
No portion of this report may be reproduced in any form without the express written permission of Janes Capital Partners.Janes Capital Partners is a federally registered U.S. trademark.
Copyright 2019, Janes Capital Partners, Inc. All rights reserved.
Janes Capital Partners specializes in Mergers & Acquisitions (M&A) for middle market Aerospace& Defense companies. Our clients are Aerospace & Defense companies with enterprise valuesbetween $25 million and $500 million. The team at Janes Capital Partners has completed over 75transactions within the Aerospace & Defense industry. Through this M&A experience, we provideour clients with unparalleled access to potential acquirers in the aerospace and defense industryalong with in-depth knowledge of the industry and its dynamics. Our clients receive high touchservice from accomplished professionals with extensive A&D transaction and industryexperience.
Janes Capital Partners is a member firm of Oaklins, a global alliance of mid-market investmentbanks. Established in 1985, the alliance includes over 700 M&A professionals, with 60+ memberfirms in 41 countries around the globe. The alliance has closed over 1,500 transactions totalingmore than $75 billion in transaction value in the past five years. Janes Capital Partners servesas Oaklins’ Global Aerospace & Defense Industry Group Practice Leader.
Select Transactions
About Janes Capital Partners
Jason KimballVice PresidentOffice: (949) 769-3323 Ext. 6903Mobile: (949) [email protected]
Ken FukumotoVice PresidentOffice: (949) 769-3323 Ext. 6904Mobile: (831) [email protected]
Chris ReineckeAnalystOffice: (949) 769-3323 Ext. 6905Mobile: (714) [email protected]
Acted as Financial Advisor to
NASDAQ: HTCH
On its acquisition of
$245,000,000
Acted as Financial Advisor to
on the sale of its Santa Ana operations, a leading manufacturer of flight critical parts for military
and commercial aircraft, to an affiliate of
Acted as Financial Advisor to
Innovative designer and manufacturer of fixed-base flight simulators based on Airbus A320
and Boeing 737 for airline pilot training; on its sale of a majority
stake to
Acted as Financial Advisor to
Leading designer and manufacturer of tactical, cyber-secure, cross domain products; on its sale to
Acted as Financial Advisor to
Leading provider of lightning protection systems;
on its sale to
2
Quarterly UpdateQ1 2019
Aerospace & Defense
Valuation Metrics
Target Target Description AcquirorAnnounced
DateImplied TEV
($M)TEV/
RevenueTEV/
EBITDADeal Type(s)
PU I
PU PB I
PR I
PS
PS
0.7x na
Inmarsat is a satellite and telecommunications company thatprovides mobile satellite services with maritime, aeronautical andland mobile operations. It also offers telephone and data services tocustomers. The Company operates through its wholly ownedsubsidiary, Inmarsat Government, to offer mobile satellitecommunications to defense, federal civilian agencies and intelligenceagencies through its network infrastrusture.
03/19/19 $5,533.5 3.8x
Daewoo Shipbuilding & Marine Engineering is an offshore shipbuildingcompany that offers commercial vessels and specialty vessels suchas destroyers, battleships, submarines, submarine rescue vessels,autonomous underwater vehicles (AUVs) and other vessels. TheCompany is one of the "Big Three" shipbuilders of South Koreaalongside Hyundai and Samsung.
01/31/19 $5,862.6
7.6x
Hispasat offers satellite communication services. The Companyoffers products in the following markets: audiovisual, companies andgovernment operations and satellite programs. Its companies andgovenment solutions comprise satellite comminucations forunmanned aircraft vehicles (UAVs), telecommand networks andothers.
02/12/19 $1,520.0 6.6x 8.3x
na na
na
Endeavor Robotics is a ground robot company and developer of battle-hardened, tactical unmanned ground vehicles (UGVs) for the publicsafety, critical infrastructure and global military markets. Its easy tooperate gound robots are equipped with advanced sensing andactuation technology providing reconnaissance, explosive ordinancedisposal, hazardous materials support and inspection services forpolice, troops and others.
02/11/19
$750.0 na
LGS Innovations is a leading provider of SIGINT, cyber products andsolutions to the Intelligence Community (IC) and Department ofDefense (DoD). Products and services include intelligent spectrummanagement, mission support services, wireless and cyber training,sensors, signals processing and analysis, optical networking, routingand C4ISR services.
01/30/19
$382.0
Top 5 M&A Deals this Quarter
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
3
Quarterly UpdateQ1 2019
Aerospace & Defense
-------------$9 $57 $67 $79 $177 $182 $200
$819 $1,909
$5,863 $7,335
$0 $10,000
Test & Measurement
Specialty Defense Systems and Services
Sensors & C4ISR
Prime Defense Contractors
Machined & Cast Parts
Engineering and Project Management
Electronics Manufacturing (EMS) & Harnessing
Distribution
Cybersecurity, Intelligence Services and Homeland Defense
Controls & Systems
Connectors
Aircraft Interiors
Aerostructures
Simulation & Training Systems
Defense Electronics
Land Systems
Engines & Engine Systems
Components & Subsystems
Composites
MRO & Logistics
Unmanned Vehicles
Government Services, IT Services and Software
Navy/Maritime
Satellite, Satellite Services & Space Systems
Total Disclosed Volume ($M)
M&A Deal Volume
Average Size of Disclosed Deals and Total Disclosed Volume(last 13 quarters)
Number of Deals by Segment(Q1 2019)
Average deal size decreased over last quarter from $1,302M to $596M
– Total disclosed deal volume totaled $16.7B, a decrease of more than
$51.0B from Q4 2018
There were 119 A&D deals announced in Q1 2019, which was a decrease
from the 136 deals announced during Q4 2018 and a year-over-year
increase of 15.5% from Q1 2018
The most active segments ranked by total number of deals were:
– Government Services, IT Services and Software
– Components & Subsystems
– MRO & Logistics
– Machined & Cast Parts
Volume of Deals by Segment(Q1 2019)
Source(s): CapIQ, Dacis, company reports, press releases
Number of Deals by Quarter (last 13 quarters)
4
30 2234 37 31 28
4127
37 30 3452
28
35 52
82 74
5982 64
79 6665
75
84
916574
116111
90
110105 106 103
95
109
136
119
0
20
40
60
80
100
120
140
160
16-1Q 16-3Q 17-1Q 17-3Q 18-1Q 18-3Q 19-1Q
Num
ber
of D
eals
Disclosed Not Disclosed
$28
5 $52
7
$25
5 $45
2
$54
4
$15
5
$1,
212
$37
9
$1,
053
$54
6
$24
2
$1,
302
$59
6
$0
$10
$20
$30
$40
$50
$60
$70
$0
$500
$1,000
$1,500
$2,000
$2,500
16-1Q 16-3Q 17-1Q 17-3Q 18-1Q 18-3Q 19-1Q
Tota
l Dis
clos
ed V
olum
e ($
BN
)
Ave
rage
Dea
l Siz
e ($
M)
Average Deal Size Total Disclosed Value
–––
1 1 1 1 1 1 2 2 2 3 3 4 4 5 5 6 7
13 15
17 25
0 6 12 18 24 30
Sensors & C4ISR
Prime Defense Contractors
Connectors
Land Systems
Engines & Engine Systems
Electronics Manufacturing (EMS) & Harnessing
Controls & Systems
Aircraft Interiors
Aerostructures
Test & Measurement
Navy/Maritime
Distribution
Simulation & Training Systems
Composites
Engineering and Project Management
Defense Electronics
Specialty Defense Systems and Services
Cybersecurity, Intelligence Services and Homeland Defense
Unmanned Vehicles
Satellite, Satellite Services & Space Systems
Machined & Cast Parts
MRO & Logistics
Components & Subsystems
Government Services, IT Services and Software
Number of Deals
Quarterly UpdateQ1 2019
Aerospace & Defense
TEV / EBITDA A&D Transaction Multiples by Quarter (last 13 quarters)
Quarterly TEV / EBITDA Transaction Multiples
The average TEV / EBITDA transaction multiple over the last 13 quarters across all A&D transactions was 10.6x
Of the over 1,300 deals tracked by Janes Capital Partners over this period, only 80 reported TEV / EBITDA multiples
As expected, multiples vary widely by segment with Cybersecurity, Intelligence Services and Homeland Defense (14.4x), Components & Subsystems (10.9x) and Distribution (6.4x) comprising the highest, median and lowest segments
TEV / EBITDA Transaction Multiples by Segment(last 13 quarters)
Note: Excludes TEV / EBITDA transaction multiples over 30.0xSource(s): CapIQ, Dacis, company reports, press releases
5
14.4x
9.8x
8.3x
13.5x
12.5x
10.7x
9.5x
10.6x
11.9x
8.3x
9.7x
10.4x
8.8x
5
7
8
9
4
3
10
5
8
7
4
7
3
0x 4x 8x 12x 16x
16-1Q
16-2Q
16-3Q
16-4Q
17-1Q
17-2Q
17-3Q
17-4Q
18-1Q
18-2Q
18-3Q
18-4Q
19-1Q
TEV / EBITDANumber of Deals with Reported TEV / EBITDA MultiplesN
-
-
-
-
-
-
6.4x
6.5x
7.7x
8.4x
8.6x
9.1x
9.3x
9.5x
10.9x
11.7x
11.7x
11.9x
11.9x
12.3x
12.8x
13.0x
13.3x
14.4x
1
0
0
0
0
0
2
2
7
6
2
4
6
7
10
1
1
4
9
1
6
1
8
2
0x 5x 10x 15x 20x
Navy/Maritime
Prime Defense Contractors
Land Systems
Connectors
Composites
Aircraft Interiors
Distribution
Sensors & C4ISR
Machined & Cast Parts
MRO & Logistics
Engineering and Project Management
Electronics Manufacturing (EMS) & Harnessing
Controls & Systems
Satellite, Satellite Services & Space Systems
Components & Subsystems
Engines & Engine Systems
Unmanned Vehicles
Aerostructures
Government Services, IT Services and Software
Test & Measurement
Defense Electronics
Simulation & Training Systems
Specialty Defense Systems and Services
Cybersecurity, Intelligence Services and HomelandDefense
TEV / EBITDA Number of Deals with Reported TEV / EBITDA MultiplesN
Quarterly UpdateQ1 2019
Aerospace & Defense
LTM LTM EBITDA Market % of TEV / LTM LTM LTM EBITDA Market % of TEV / LTM
($ in millions) Revenue Margin Cap 52-Wk Hi TEV EBITDA ($ in millions) Revenue Margin Cap 52-Wk Hi TEV EBITDA
Aerostructures Machined and Cast Parts
CPI Aerostructures $91 11.0% $76 55.3% $111 11.1x Arconic $14,110 13.0% $8,658 79.4% $14,049 7.6x
Ducommun 651 10.9% 497 92.0% 745 10.5x ATI 4,072 11.1% 3,225 84.7% 4,663 10.3x
FACC 888 6.4% 665 56.4% 880 15.4x Barnes Group 1,506 21.6% 2,641 70.7% 3,478 10.7x
Hexcel 2,259 23.5% 5,870 94.2% 7,057 13.3x Lisi 1,884 14.3% 1,636 75.2% 2,033 7.6x
Kaman 1,869 8.5% 1,628 77.8% 1,982 12.4x Senior 1,379 11.6% 1,181 64.8% 1,376 8.6x
Latécoère 755 6.5% 331 56.2% 390 8.0x SIFCO 116 1.3% 16 46.0% 40 NM
Magellan 742 15.3% 773 89.2% 819 7.2x Median 12.3% 8.6x
Spirit AeroSystems 7,454 15.9% 9,672 91.2% 10,743 9.1x
Triumph 3,365 4.3% 951 69.1% 2,347 16.2x MROMedian 10.9% 11.1x AAR $1,963 7.3% $1,118 63.1% $1,266 8.8x
BBA Aviation 2,347 18.0% 3,355 70.3% 4,690 11.1x
Commercial Airframes HEICO 1,839 25.9% 11,754 99.9% 12,556 NM
Airbus $74,228 9.3% $102,655 98.7% $104,465 15.1x MTU Aero Engines 5,255 16.9% 11,694 99.8% 11,461 12.9x
Boeing 100,662 13.4% 215,305 85.5% 223,491 16.6x ST Engineering 4,916 12.5% 8,618 98.4% 8,889 14.5x
Bombardier 15,724 7.0% 4,576 46.1% 12,730 11.6x Wesco Aircraft 1,639 8.8% 877 61.8% 1,701 11.8x
Embraer 4,836 5.4% 3,487 67.1% 4,547 17.5x Median 14.7% 11.8x
Textron 13,718 11.5% 11,847 69.5% 15,391 9.8x
Median 9.3% 15.1x
Components & Subsystems Defense Electronics, Sensors & C4ISR
Ametek $4,961 26.8% $18,877 99.8% $21,170 15.9x AeroVironment $343 18.1% $1,614 56.4% $1,320 21.3x
CIRCOR 1,171 10.5% 648 62.4% 1,334 10.9x Cubic 1,319 7.4% 1,752 72.7% 2,177 22.3x
Cobham 2,375 13.8% 3,421 81.8% 3,410 10.4x Elbit 3,684 11.5% 5,529 96.1% 6,120 14.5x
Crane 3,378 17.3% 5,067 84.5% 5,931 10.1x FLIR 1,781 23.7% 6,452 74.5% 6,937 16.4x
Meggitt 2,652 18.8% 5,050 86.1% 6,419 12.9x Harris 6,611 23.7% 18,819 91.0% 22,017 14.0x
RBC Bearings 700 26.0% 3,048 74.9% 3,081 16.9x Kongsberg Gruppen 1,659 9.2% 2,734 64.2% 2,077 13.6x
Teledyne 2,951 18.9% 8,585 94.5% 9,479 17.0x Kratos 635 8.6% 1,626 87.5% 1,802 NM
Timken 3,677 17.3% 3,320 83.2% 5,030 7.9x KVH Industries 171 2.1% 181 72.0% 208 NM
TransDigm 4,219 47.4% 24,015 99.6% 38,921 19.4x L3 Technologies 10,573 13.3% 16,368 92.2% 19,316 13.8x
Woodward 2,719 18.4% 5,891 97.2% 6,986 13.9x Mercury Systems 631 19.9% 3,105 94.4% 3,272 NM
Median 18.6% 13.4x OSI Systems 1,161 13.0% 1,583 96.1% 1,857 12.3x
QinetiQ 1,123 16.8% 2,197 95.6% 1,869 9.9x
Controls & Systems Smiths 4,262 17.7% 7,399 79.3% 8,654 11.5x
Astronics $832 13.1% $1,065 80.8% $1,164 10.7x Thales 18,153 12.8% 25,457 85.8% 22,113 9.5x
Curtiss-Wright 2,443 20.5% 4,854 79.0% 5,620 11.2x Ultra 977 15.1% 1,481 90.5% 1,681 11.4x
Eaton 21,663 18.0% 34,175 90.1% 41,786 10.7x Median 13.3% 13.7x
Heroux-Devtek 322 14.3% 432 94.8% 622 13.5x
Honeywell 40,294 21.9% 115,753 94.8% 122,081 13.8x Prime Defense ContractorsISSC 15 NM 51 79.4% 30 NM BAE $21,439 11.6% $20,096 70.9% $21,463 8.7x
Moog 2,791 12.6% 3,030 89.9% 3,743 10.7x General Dynamics 37,919 14.2% 48,883 73.7% 63,142 11.7x
Parker-Hannifin 14,456 18.2% 22,202 88.8% 26,340 10.0x Huntington Ingalls 8,382 13.9% 8,631 77.4% 10,260 8.8x
Median 18.0% 10.7x Leonardo 14,045 13.2% 6,684 94.4% 11,413 6.2x
Lockheed Martin 56,463 15.9% 84,888 82.9% 97,875 10.9x
Engines & Engine Systems Northrop Grumman 31,549 16.3% 45,761 74.7% 61,490 11.9x
General Electric $112,884 13.6% $87,009 64.1% $203,097 13.2x Raytheon 27,520 14.3% 51,390 79.3% 55,437 14.1x
Rolls Royce 20,047 NM 22,290 81.8% 21,950 NM Median 14.2% 10.9x
Safran 24,073 16.6% 60,292 99.9% 64,895 16.2x
UTC 69,624 17.1% 111,146 89.4% 155,011 13.1x
Median 16.6% 13.2x
Aerospace & Defense Public Valuations
Note: Trading metrics as of 3.31.19. Valuation multiples based on LTM financial data converted at the historical exchange rate as of each fiscal period end date, and excludes multiples above 25.0x and under 0.0x.Source(s): CapIQ
Public Valuations by A&D Segment
6
Quarterly UpdateQ1 2019
Aerospace & Defense
Top 10 Bottom 10
NYSE:CUB 22.3x LSE:BAB 5.9x
NasdaqGS:A
VAV21.3x NYSE:VEC 6.1x
NYSE:TDG 19.4x BIT:LDO 6.2x
NasdaqGS:K
EYW19.2x
NasdaqGS:A
OBC6.8x
NYSE:SAIC 18.2x TSX:MAL 7.2x
NYSE:ERJ 17.5x NYSE:FLR 7.3x
NYSE:TDY 17.0x ENXTPA:FII 7.6x
NasdaqGS:R
OLL16.9x NYSE:ARNC 7.6x
NYSE:BA 16.6x NYSE:KBR 7.8x
NasdaqGS:F
LIR16.4x NYSE:TKR 7.9x
LTM LTM EBITDA Market % of TEV / LTM LTM LTM EBITDA Market % of TEV / LTM
($ in millions) Revenue Margin Cap 52-Wk Hi TEV EBITDA ($ in millions) Revenue Margin Cap 52-Wk Hi TEV EBITDA
Satell ites, Satell ite Services and Space Systems Engineering and Construction
Aerojet Rocketdyne $1,896 14.5% $2,795 86.7% $2,790 10.2x AECOM $20,531 4.5% $4,631 80.3% $7,891 8.6x
Ball Corporation 11,635 15.3% 19,335 98.2% 26,188 14.7x Babcock 5,998 14.3% 3,242 56.9% 5,068 5.9x
Comtech 640 12.9% 560 62.9% 690 8.4x Fluor 18,536 4.0% 5,138 59.3% 5,408 7.3x
Gilat Satellite 261 13.2% 464 78.2% 408 11.9x Jacobs Engineering 16,506 6.3% 10,490 91.4% 12,747 12.3x
Intelsat 2,146 74.6% 2,162 41.5% 16,077 10.0x Median 5.4% 8.0x
Maxar Technologies 2,088 16.3% 240 7.3% 3,562 10.4x
ViaSat 1,951 8.2% 4,687 98.5% 5,808 NM Government, IT Services & Software
Median 14.5% 10.3x Booz Allen $6,559 10.2% $8,144 99.5% $9,707 14.6x
CACI 4,783 9.6% 4,525 90.6% 6,189 13.4x
Specialty Systems and Services CGI Group 8,808 17.0% 18,778 99.6% 20,000 13.4x
American Outdoor $635 16.2% $510 58.6% $700 6.8x ICF 1,376 9.1% 1,431 92.5% 1,801 14.4x
Axon Enterprise 435 6.2% 3,201 71.2% 2,885 NM KBR 5,215 8.7% 2,692 85.9% 3,530 7.8x
CAE 2,206 18.6% 5,871 98.5% 6,652 16.2x KEYW 495 7.8% 428 85.7% 742 19.2x
Chemring 379 3.5% 506 58.0% 610 NM Leidos 10,328 10.2% 9,205 88.6% 12,208 11.6x
MSA Safety 1,358 20.7% 3,984 93.3% 4,241 15.1x ManTech 1,987 8.4% 2,148 79.3% 2,255 13.5x
SAAB 3,653 9.8% 4,287 63.9% 4,549 12.7x MAXIMUS 2,557 14.1% 4,528 96.2% 4,563 12.6x
Median 13.0% 13.9x SAIC 4,659 7.6% 4,554 82.5% 6,444 18.2x
Serco Group 3,616 4.8% 1,819 92.6% 2,065 11.8x
Vectrus 1,285 4.4% 300 66.8% 345 6.1x
VSE 690 11.6% 344 59.4% 650 8.1x
Median 9.1% 13.4x
Market Performance Summary
Aerospace & Defense Public Valuations (continued)
TEV / EBITDA Valuation Trend by Sector(last 6 years)
Performance Dashboard(by TEV / EBITDA Valuation)
Note: Trading metrics as of 3.31.19. Valuation multiples based on LTM financial data converted at the historical exchange rate as of each fiscal period end date, and excludes multiples above 25.0x and under 0.0x.Source(s): CapIQ
Public Valuations by A&D Segment (continued)
11%
11%
11%
7
12.2x 12.4x
11.7x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
Apr
-12
Oct
-12
Apr
-13
Oct
-13
Apr
-14
Oct
-14
Apr
-15
Oct
-15
Apr
-16
Oct
-16
Apr
-17
Oct
-17
Apr
-18
Oct
-18
Apr
-19
TEV
/ E
BIT
DA
Commercial Aerospace Defense Government & IT
Quarterly UpdateQ1 2019
Aerospace & Defense
Transaction SummaryOn March 1, 2019, CACI (NYSE: CACI) acquired LGS Innovations for $760million in an all-cash transaction financed through an existing credit facility.CACI is a multinational professional services technology company servingbranches of the federal government, including defense, homeland security,intelligence and healthcare. LGS provides signal processing, multi-waveform,detection algorithms and advanced R&D and engineering services. TheCompany is expected to run as an independent subsidiary of CACI and willcontinue with its plans to expand into San Antonio with a new office. Thesimultaneous acquisition of LGS Innovations and Mastodon is expected toadd $480 million in revenue and $82 million of adjusted EBITDA over the
Deal Spotlight
Headquarters Arlington County, VA
Employees 22,000
LTM FY19 Q1 Revenue $4,783
LTM FY19 Q1 Adj. EBITDA $461
President, CEO & Director Asbury, Ken
Executive VP & CFO Mutryn, Thomas A.
CACI to Acquire LGS Innovations
Deal Rationale
(*): Valuation of both LGS and Mastodon based on combined EBITDA
Strategic Rationale Benefits from Acquiring LGS
Structure All-Cash Transaction
Total Enterprise Value $760
LTM Revenue Multiple N/A
LTM EBITDA Multiple 10.0x*
Announced Date January 30, 2019
Close Date March 1, 2019
Expand Product and Solution Offerings in Signals Intelligence, Electronic Warfare
and Cyber
CACI will blend its ground-based systems integration and SIGINT / COMMS expertise with LGS’ aircraft-based SIGINT systems, advanced signals and contested COMMS expertise to create a layered SIGINT and communications platform
Operations will be multi-domain and well suited for contested environments
Integrate Capabilities Enabling New Waysto Perform Missions
Advanced signal collection and analysis from LGS drives faster and more accurate detection and response
CACI Battlespace Attack Modules will be half their current size, but twice their current capacity to reduce the load on soldiers and increase efficiency
Expand Total Addressable Market and Align Strategic
Investments
Deal Summary
CACI Key Figures ($M)
8
Combination of Capabilities
Headquarters Herndon, VA
Employees 1,320
LTM FY18 Q3 Revenue N/A
LTM FY18 Q3 Adj. EBITDA N/A
CEO & Director Kelly, Kevin L.
Executive VP & CFO Beck, Jeffrey R.
LGS Innovations Key Figures
SIGINT products resulting from the acquisition of LGS will enable faster detection and faster response, while simultaneously attacking more signals
LGS is a high-growth, high-margin company that will enable CACI to naturally expand their addressable market and increase profitability
upcoming twelve months. The combined LGS Innovations and Mastodon acquisition represents an approximate10.0x EBITDA multiple. Both transactions are intended to improve CACI’s portfolio in spectrum management,C4ISR, cyber products and manufacturing of products for electronic warfare, signals intelligence and cyberoperations. CACI intends to become a more high-end integrator of solutions and technologies for agencies.
Aircraft-based SIGINT Systems
Advanced Signals
Contested COMMS Expertise
Layered SIGINT and COMMS Solution
Multi-Domain Operations
Built for Contested Environments
Ground-based Systems
Integration
SIGINT / COMMS Expertise
LGS OverviewHeadquartered in Herndon, VA, LGS Innovations is a leading provider of SIGINT, cyber products and solutions tothe Intelligence Community and Department of Defense. Products and services include intelligent spectrummanagement, mission support services, wireless and cyber training, sensors, signals processing and analysis,optical networking, routing and switching and network assurance. The Company also offers cyber services andC4ISR services, such as wireless, video, mission support, surveillance and reconnaissance and integration.Industries served by the Company include defense, intelligence, civilian agencies, state and local governments,infrastructure operators, and telecommunications providers.
Commentary from the CEOsKen Asbury, CACI's President and Chief Executive Officer, said, "CACI's acquisition of LGS Innovations is the nextstep in our established strategy to invest in and expand our offerings in signals intelligence, electronic warfare,and cyber products and solutions. Our collective strengths give CACI a significant competitive advantage in ourmarketplace and meet our government's need for agile innovation in developing and deploying advancedcapabilities to our warfighters.“ LGS Innovations Chief Executive Officer Kevin L Kelly said, “We are thankful forthe support of MDP and CoVant and their willingness to invest in our growth, and we are excited about thecombination of LGS and CACI. We believe our market-leading C4ISR and cyber capabilities and culture ofinnovation, along with CACI’s extraordinary channels to customers, and our shared mission focus willaccelerate growth and market penetration for the combined enterprise.”
Sources: CapIQ, Dacis, company presentations and website
Quarterly UpdateQ1 2019
Aerospace & Defense
HEICO is an experienced buyer that has made 7acquisitions over the last 15 months, including itslargest to date. Acquisitions are an essentialcomponent of HEICO’s growth strategy. TheCompany leverages acquisitions to spur growth, asevident in 2018 earnings when net income grew~36% and beat expectations. HEICO covers a broadrange of industry segments and is seeking tocontinue stimulating growth across the boardthrough complementary acquisitions.
FSG Replacement
Parts 32%
FSG Repairs
16%
FSG Specialty Products
13%
ETG A&D Parts 30%
ETG Other
9%
Notable Recent Acquisitions
Date Target TEV Description
Feb ’19 --
Designs and manufactures composite parts and unmanned airframes for defense and civilian applications.
Feb ’19 --
Designs and manufacturesceramic-to-metal feedthroughs for defense, industrial and semiconductor markets.
Nov ’18 --
Provides analog amplifier products for industrial, A&D, medical and semiconductor capital equipment markets.
Nov ’18 --
Designs and manufactures silicone materials for aerospace, defense, oil & gas and other markets.
($ in Millions) FY 2015 FY 2016 FY 2017 FY 2018 LTM 1/31
Revenue $1,189 $1,375 $1,525 $1,778 $1,840
EBITDA $278 $332 $372 $452 $477
EBITDA Margin 23.4% 24.1% 24.4% 25.4% 25.9%
TEV / LTM Revenue 3.0x 3.8x 5.3x 5.4x 6.6x
TEV / LTM EBITDA 13.0x 15.8x 21.6x 21.1x 25.5x
Cash & ST Investments $34 $43 $52 $60 $58
Headquarters Hollywood, FL
Founded 1949
Employees ~5,400
Acquisitions 28
Market Cap $13,460
Total Debt $608
Revenue $1,840
EBITDA $477
TEV / EBITDA 30.7x
Price / Earnings 47.5x(1) Market data as of 3.31.19; LTM financial data as of 1.31.19
Note: Fiscal year ends October 31st; market data as of 3.31.19
Sources: CapIQ, Dacis, company presentations and website
Share Price Performance
HEICO Corp Highlights ($M)
Key Management
-[space
Buyer Spotlight HEICO Corp (NYSE:HEI)
DescriptionHeadquartered in Hollywood, FL, and founded in1957, HEICO Corporation is a successful, fastgrowing, technology-driven company servingthe aerospace, industrial defense andelectronics industries through its varioussubsidiaries. HEICO is a leading manufacturerof Federal Aviation Administration (FAA) -approved jet engine and aircraft componentreplacement parts. Its products are foundworld-wide on commercial, regional, business,and military aircraft, as well as a large varietyof industrial turbines, targeting systems,missiles and electro-optical devices. Operations
HEICO Systems Financial History
Transaction Highlight
HEICO Corp acquires Decavo LLCOn February 28, 2019, HEICO announced its acquisition of 80.1% of Decavo in an all cash transaction for anundisclosed amount. Founded in 2009 and based in Hood River, OR, Decavo engineers and manufactures state-of-the-art, complex composites for companies in the aerospace, industrial and medical industries. HEICOexpects the acquisition and integration of Decavo to be accretive within the year following the purchase. TheCompany plans to keep on both co-founders, Phil Nies and Blake Richards, who will also retain ownership.Laurans A. Mendelson, HEICO’s Chairman & Chief Executive Officer, and Eric A. Mendelson, HEICO’s Co-Presidentand CEO of its Flight Support Group, jointly noted, “Decavo has excelled at responding [to customers] technicallyand with turn times that have fostered exceptional growth.” Decavo was number four in a string of recentacquisitions by HEICO, signaling managerial optimism and continued focus on growth through acquisitions.
are split into two segments, the Flight Support Group (FSG) and the Electronic Technologies Group (ETG). Overthe last 30 years, the current management team has grown net income from continuing operations from $2Mto $259M. The Company is seeking to continue realizing strong performance by leveraging recent acquisitions,while maintaining cost discipline, exemplified in the Company’s 19% compound annual growth rate.
M&A Strategy
Laurans Mendelson Chairman of the Board & CEO
Carlos Macau Jr. EVP & CFO
Thomas Irwin EVP
9
FY 2018 Revenue Breakdown
Revenue by Operating Segment Revenue by Product Line
Electronic Tech Group (ETG) 39%Flight Support
Group (FSG) 61%
FSG (32%) – Various jet engineand aircraft componentsFSG Repairs (16%) –Sale of parts con-sumed in repair andoverhaul servicesFSG SpecialtyProducts (13%) –Sale of specialtycomponentsETG A&D Parts (30%) –Electro-optical, microwaveand other power equipmentETG Other (9%) – Various electromagnetic products
Flight Support Group (61%) –New part design, manu-facturing, repairs andoverhauls, distributionand specialty productmanufacturingElectronicTechnologies Group(39%) – Designs andmanufactures subcom-ponents and systems usedin A&D, electronics, medical,telecom and other systems found in aircraft,satellites and missiles
00.20.40.60.811.21.41.61.8
$0
$20
$40
$60
$80
$100
Apr-18 Jul-18 Oct-18 Jan-19 Apr-19
Vol
um
e (i
n m
illio
ns)
Sh
are
Pri
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Trad. Vol. HEI S&P 500 (rebased)
Quarterly UpdateQ1 2019
Aerospace & Defense
Date Key Event
August 25, 2015Oshkosh was chosen by the Army and awarded a $6.7 billion low rate initial production (LRIP) contract for up to 16,901 vehicles.
September 3, 2013Testing began at Aberdeen Proving Ground, MD; Yuma, AZ; and Redstone Arsenal, AL.
August 22, 2012The Army awarded (1) AM General, (2) Lockheed Martin, and (3) Oshkosh with the EMD contracts totaling approximately $185 million.
January 26, 2012The Army issued the Request for Proposal (RFP) for the JLTV’s Engineering Manufacturing Development (EMD) Phase.
October 28, 2008Awards were made to (1) BAE Systems, (2) Lockheed Martin, and (3) AM General for the JLTV Technology Development (TD) Phase.
Type Light Tactical Vehicle
Manufacturer Oshkosh Defense
Designed 2005 – 2015
Speed 70 mph
Curb Mass 14,000 lbs.
Main Armament Light-Medium Caliber
Secondary Armament M7 Smoke Grenades
Unit Cost $433,539
Operational Range 300 miles
DescriptionThe Joint Light Tactical Vehicle (JLTV) program was approved in 2006 to replace many of the High Mobility,Multi-Wheeled Vehicles (HMMWVs) in the United States’ military. Through various developmental phases, theJLTV has evolved to provide the US military (US Army and US Marine Corps, specifically) with more survivablevehicles with greater payloads. JLTVs’ capabilities include performing armament carrier, utility, command andcontrol, ambulance, reconnaissance and a myriad of other tactical and logistical support roles. After multipleengineering and manufacturing development phases, Oshkosh’s L-ATV was selected as the winner of the JLTVprogram on August 25, 2015. Consequently, Oshkosh was awarded the low rate initial production (LRIP)contract worth up to US$6.7 billion to produce up to 16,901 JLTVs. This production would involve more than300 suppliers in 31 states. The JLTV family of vehicles consists of two mission categories: the four-passengerCombat Tactical Vehicle (CTV) and the two-passenger Combat Support Vehicle (CSV). Oshkosh Defense alsooffers the following JLTV variants: General Purpose (GP), Heavy Guns Carrier (HGC), Utility (UTL) and CloseCombat Weapons Carrier (CCWC). While continuing to comply with the US Army’s Long Term Armor Strategy(LTAS), JLTVs and its variants, have continued to evolve as the program develops further.
Platform Overview Joint Light Tactical Vehicle (JLTV)
HistoryDeveloped during the Cold War, HMMWVs first entered thearmed service in 1985. Due to their vulnerability toimprovised explosive devices (IEDs) and the high costs inup-armoring HMMWVs, JLTVs were designed and originallyreported as a one-for-one HMMWV replacement. However,the US Department of Defense has since clarified thatJLTVs are not intended to replace all HMMWVs. InNovember 2006, the Joint Chiefs of Staff’s JointRequirement Oversight Council (JROC) approved the JLTVprogram. On October 28, 2008, the JLTV TechnologyDevelopment awards were made to (1) BAE Systems Landand Armaments, Ground Systems Division; (2) GeneralTactical Vehicles; and (3) Lockheed Martin Systems. Yearslater, the Army issued the Request for Proposal (RFP) forthe JLTV’s Engineering Manufacturing Development (EMD)phase. On August 22, 2012, the Army announced that thethree companies awarded the EMD contracts were AMGeneral, Lockheed Martin, and Oshkosh. After testing thevehicles, Oshkosh was declared the winner of the US$6.7billion LRIP with the US DoD.
10
Joint Light Tactical Vehicle Overview
Platform OutlookThe US Army plans to purchase 49,099 JLTV production vehicles from 2015 through 2035, and the MarineCorps plans to purchase 5,500 JLTVs from 2015 to 2022. After already entering the LRIP phase in 2015, theJLTV is expected to be approved for Full Rate Production (FRP) in 2019 with Initial Operational Capability (IOC)scheduled for December 2019. The UK and Lithuania are potential future operators since recently expressinginterest in acquiring Oshkosh JLTVs. At this time, Slovenia is the only certain future operator of JLTVs besidesthe US, having signed a government-to-government purchase agreement in November of 2018.
Oshkosh JLTV Design and Features
Oshkosh JLTV Variants
Variant Description
GeneralPurpose (GP)
Carries crew and cargo tomissions and back with
70% faster off-road performance.
Heavy Guns Carrier (HGC)
Optimized configuration for efficient weapon system
operation and extreme pay load to haul mission cargo.
Utility (UTL)Built to haul cargo or
shelters with speed, power, and protected mobility.
Close Combat Weapons
Carrier (CCWC)
Delivers the capacity to haul a wide range of cargo for a
wide array of missions.
Current, Future and Potential JLTV Operators
Current requirements are 49,099 forthe Army, 9,091 for the Marines, and3,270 desired by the Air Force.
In November 2018, Slovenia signedgovernment-to-government agreementfor the procurement of 38 JLTVs.
The Lithuanian Ministry of Defense(MND) contacted the US DOD inNovember of 2017 regarding apotential acquisition of 200 JLTVs.
The British Army is reportedly workingwith Foreign Military Sales (FMS) toacquire 2,747 JLTVs.
JLTV Development Process
Protection Blast protected seats Scalable crew protection
system Jam-resistant doors Automatic fire suppression
system
Mobility 20 in. wheel travel 70% faster off-road
performance Helicopter transportable Fixed-wing aircraft and
amphibious transportable
Performance Fully integrated C4ISR
capabilities 5,100 lbs. payload (2-door) 3,500 lbs. payload (4-door) Four unique variants
Adaptability TAK-4i independent
suspension Plug and play access for a
range of various technologies and aftermarket kits
Sources: Defense News, Breaking Defense and website
Quarterly UpdateQ1 2019
Aerospace & Defense
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
All Transactions – Value Disclosed
Source(s): CapIQ, Dacis, company reports, press releases
11
Valuation Metrics
Announced Date
Target AcquirorImplied TEV
($M)TEV/
RevenueTEV/
EBITDASegment Deal Type(s)
PU I
PU I
PR
PR
PU I
PS
PR I
PR
PU PB I
PS PB I
PU I
naGovernment Services, IT Services and Software
03/19/19 Inmarsat PlcApax Partners LLP & Warburg Pincus LLC
$5,533.5 3.8x
naGovernment Services, IT Services and Software
7.6xSatellite, Satellite Services &
Space Systems
03/22/19 Scalian SAS Cobepa S.A. $225.9 0.9x
03/31/19 Eltel Technologistics Ltd. ELTA Systems Ltd. $23.1 0.8x
02/12/19 Hispasat, S.A.Red Eléctrica Sistemas de Telecomunicaciones, S.A.U.
$1,520.0 6.6x 8.3xSatellite, Satellite Services &
Space Systems
03/18/19 Tactical Communications Group, LLC Curtiss-Wright Corporation $50.0 3.3x naGovernment Services, IT Services and Software
01/31/19Daewoo Shipbuilding & Marine Engineering Co., Ltd.
Hyundai Heavy Industries Co., Ltd. $5,862.6 0.7x na Navy/Maritime
02/01/19 MicroPact Inc. Tyler Technologies, Inc. $204.2 2.9x naGovernment Services, IT Services and Software
01/28/19 DHA Group Inc. ECS Federal, LLC $46.0 0.9x naGovernment Services, IT Services and Software
01/29/19 GECO Inc. Mercury Systems, Inc. $36.5 1.8x 10.5x Defense Electronics
01/13/19 Aeronautics Ltd. Rafael Advanced Defense Systems Ltd. $236.6 2.4x nm Unmanned Vehicles
01/16/19 Eltek Ltd. Nistec Golan Ltd. $20.1 0.6x na Defense Electronics
Note: Deals shown only include transactions with disclosed multiples
Quarterly UpdateQ1 2019
Aerospace & Defense
All Transactions – Value Not Disclosed
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
12
Announced Date Target Acquiror Segment Deal Type(s)
PR PB I
PR PB
PS PB
PR
PR I
PR PB
PR
PR PB
PR I
PR PB
PR I
PR I
PR
PR I
PR
PR PB
PR
PU
OGSystems, LLC Parsons Corporation
Components & Subsystems
01/07/19
General Aerospace GmbH Stabilus S.A.
Government Services, IT Services and Software
01/07/19 Standard Bent Glass Corp. Ibis Tek Inc.Specialty Defense Systems and
Services
01/07/19
Dormer Pramet AB Machined & Cast Parts
01/08/19
BERKS Group
Kellstrom Defense Aerospace, Inc. Components & Subsystems
01/07/19
Williams Aerospace & Manufacturing, Inc.
Components & Subsystems
01/03/19 Accelerated Development and Support Corporation Technical Services Corporation (nka:ADS Federal)Government Services, IT Services and
Software
01/03/19 Swiss-Tech, LLC.
Components & Subsystems
01/09/19 Wetmore Tool & Engineering Inc.
Satellite, Satellite Services & Space Systems
01/03/19 TSS Technologies, Inc. Resilience Capital Partners LLC Engineering and Project Management
01/02/19 Deep Space Industries, Inc. (nka:Bradford Space Inc.) Bradford Engineering B.V.
Midé Technology Corp. Hutchinson S.A.
Test & Measurement
01/08/19 California Brazing & Nevada Heat Treating, Inc. Trive Capital Machined & Cast Parts
01/08/19 Talon Test Labs, Inc. Applus Services, S.A.
01/09/19Paint and Interior Completion Business of Lotus Aviation Group
Gama Aviation Plc MRO & Logistics
01/09/19 Advanced C4 Solutions, Inc. Hui HuliauGovernment Services, IT Services and
Software
MRO & Logistics
01/10/19 Aero Turbine, Inc Gallant Capital Partners, LLC MRO & Logistics
01/10/191st Choice Aerospace Inc. (Florida) and 1st Choice Aerospace Inc. (Ohio)
VSE Aviation, Inc
Machined & Cast Parts
01/14/19Precision Cooling Business of Parker-Hannifin Corporation
Advanced Cooling Technologies, Inc. Controls & Systems
01/10/19 Momeni Engineering, LLC Essex Industries, Inc.
Quarterly UpdateQ1 2019
Aerospace & Defense
Source(s): CapIQ, Dacis, company reports, press releases
All Transactions – Value Not Disclosed (continued)
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
13
Announced Date Target Acquiror Segment Deal Type(s)
PR I
PR
PR
PR I
PR I
PR I
PR I
PR
PR
PS
PR I
PU I
PR I
PU PB
PR
PR PB
PR PB
PU PB
Cybersecurity, Intelligence Services and Homeland Defense
01/15/19 Centrifuge Systems, Inc. Culmen International, LLCGovernment Services, IT Services and
Software
01/14/19 ForceNock Security Ltd. Check Point Software Technologies Ltd.
Machined & Cast Parts
01/16/19 Aircam UAV Technology Corporation microdrones GmbH Unmanned Vehicles
01/15/19 Bay Shore Steel Works LLC Grand Traverse Band of Ottawa and Chippewa Indians
Defense Electronics
01/17/19 Agiliteam SARL Jinpao Precision Industry Co.,Ltd. Machined & Cast Parts
01/16/19 Atlantic Microwave Limited ETL Systems Ltd
Electronics Manufacturing (EMS) & Harnessing
01/17/19Special Aerospace Security Services, Inc. & National Security Training Institute, Inc .
Hockeypuk Cybersecurity Consulting, LLC Specialty Defense Systems and
Services
01/17/19 EN Moteurs SAS Undisclosed Buyer
Government Services, IT Services and Software
01/18/19 Fulcrum IT Services, LLC Huntington Ingalls Industries, Inc.Government Services, IT Services and
Software
01/17/19 International Towers, Inc. S&K Technologies, Inc.
MRO & Logistics
01/21/19 Combat Vehicles Business of BAE Systems plc Rheinmetall AG Land Systems
01/21/19Worldwide Maintenance Activities of ExecuJet Aviation Group AG
Dassault Aviation SA
Components & Subsystems
01/22/19 Garsite/Progress LLC AFI Partners LLC MRO & Logistics
01/21/19 CB Rectification (nka:CB Rectif Aéroservices) Freyssinet Aero Equipment S.A.S.
MRO & Logistics
01/22/19 National Technologies Associates, Inc. VT Group, Inc. MRO & Logistics
01/22/19 LEKTRO, Inc. John Bean Technologies Corporation
Cybersecurity, Intelligence Services and Homeland Defense
01/22/19Commercial In-Flight Entertainment Business of Collins Aerospace
digEcor, Inc. Aircraft Interiors
01/22/19 System High Corporation Enlightenment Capital
Quarterly UpdateQ1 2019
Aerospace & Defense
All Transactions – Value Not Disclosed (continued)
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
14
Announced Date Target Acquiror Segment Deal Type(s)
PR PB I
PU
PU
PS I
PU PB
PS PB I
PR I
PR I
PU PB
PR I
PR I
PS
PR PB
PR
PR PB
PR PB
PR PB I
PR
01/28/19 Aeryon Labs Inc. FLIR Systems, Inc. Unmanned Vehicles
01/28/19 Convolus Ltd Aviaa Holdings, Inc.
01/24/19 Metallics Machining Business of Triumph Group Inc. TECT Aerospace, Inc Machined & Cast Parts
01/23/19 New EAS SAS Sabena Technics MRO & Logistics
01/24/19Global 7500 Wing Manufacturing Operations and Assets of Triumph Aerostructures, LLC
Learjet Inc. Aerostructures
Distribution
01/28/19Fabrications Business Of Triump Group (nka:Radius Aerospace, Inc.)
Arlington Capital Partners LP Machined & Cast Parts
01/28/19 SK AeroSafety Group Levine Leichtman Capital Partners MRO & Logistics
01/28/19 Omega Systemes SAS Web Industries, Inc. Machined & Cast Parts
01/28/19Reliability Services Business of CIRCOR International Inc.
RelaDyne, Inc. Components & Subsystems
01/29/19 Vitech Corporation Zuken Inc.Government Services, IT Services and
Software
01/30/19 LGS Innovations LLC CACI, Inc. - Federal
Aero Precision Holdings, L.P. Components & Subsystems
02/01/19 Solid Sealing Technology, Inc. HEICO Corporation Components & Subsystems
02/04/19 AvAir, Inc. Corrum Capital Management LLC Distribution
01/29/19 Aviation Skills Partnership Limited Pennant International Group plc Simulation & Training Systems
02/05/19 SEOPS, LLC Hypergiant, LLCSatellite, Satellite Services & Space
Systems
02/04/19 FBO assets of World Jet, Inc. Lynx FBO Network MRO & Logistics
Government Services, IT Services and Software
01/31/19 Applied Plastics Co., Inc. Vance Street Capital LLC Components & Subsystems
02/04/19 Lynx Avionics
Quarterly UpdateQ1 2019
Aerospace & Defense
All Transactions – Value Not Disclosed (continued)
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
15
Announced Date Target Acquiror Segment Deal Type(s)
PS
PR I
PR PB
PR PB
PR I
PS
PU PB I
PR PB
PR I
PR I
PS PB I
PR I
PS I
PR
PR
PS I
PR PB I
PU I
02/15/19 Enmark Tool & Gage Company, Inc. Mno-Bmadsen Machined & Cast Parts
02/22/19 nCipher Security Limited Entrust Datacard CorporationCybersecurity, Intelligence Services and
Homeland Defense
02/18/19 Axiom Materials, Inc. Kordsa, Incorporated Composites
02/20/19 Sci-Lab Materials Testing, Inc. National Technical Systems Inc. Test & Measurement
02/15/19 CIREX bv Signicast Corporation Machined & Cast Parts
02/15/19Aerospace and Defense Precision Machining Capabilities & Assets of Chasco Machine & Manufacturing
ICTC USA Machined & Cast Parts
02/14/19 NSO Group Technologies Ltd. Novalpina Capital LLPGovernment Services, IT Services and
Software
02/15/19 Interset Inc. Micro Focus International plcGovernment Services, IT Services and
Software
02/13/19 ASL Aviation Holdings STAR Capital Partnership LLP MRO & Logistics
02/13/19 BITES Defence & Aerospace Technologies Inc.Aselsan Elektronik Sanayi ve Ticaret Anonim Sirketi
Simulation & Training Systems
02/12/19 Flensburger Schiffbau-Gesellschaft mbH & Co. KG Sapinda Holding B.V. Navy/Maritime
02/12/19 Bright Light Systems, Inc. Phoenix Products Company Inc. Components & Subsystems
02/11/19 L&S Light & Strong, Ltd. Lohia Corp Limited Components & Subsystems
02/11/19 Endeavor Robotics FLIR Detection, Inc. Unmanned Vehicles
02/07/19 Form 3D Solutions & Manufacturing LLC Whitcraft LLC Engineering and Project Management
02/05/19 Inuktun Services Ltd. Eddyfi Technologies Unmanned Vehicles
02/05/19 The Tauri Group LLC Logistics Management Institute, Inc.Government Services, IT Services and
Software
02/06/19 Stanley Engineering Company, LLC Domaille Engineering, LLC Components & Subsystems
Quarterly UpdateQ1 2019
Aerospace & Defense
All Transactions – Value Not Disclosed (continued)
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
16
Announced Date Target Acquiror Segment Deal Type(s)
PR I
PR I
PS PB
PR I
PR
PR
PU
PR
PR PB
PR PB
PR
PU PB I
PR PB
PU
PS
PR PB
PR
PR PB
03/12/19 EvengX, LLC SecureSky, Inc.Cybersecurity, Intelligence Services and
Homeland Defense
03/14/19 Sev1Tech Inc DFW Capital Partners, Inc. Government Services, IT Services and
Software
03/06/19 ForeFlight LLC The Boeing CompanyGovernment Services, IT Services and
Software
03/08/19 Midwest Precision, LLC Tribus Aerospace LLC Machined & Cast Parts
03/05/19 BCC Products, Inc. Polytek Development Corp. Composites
03/06/19 Triumph Aviation Services - NAAS Division Inc. STS Aviation Group, Inc. MRO & Logistics
03/04/19 General Photonics Corporation Luna Technologies, Inc. Components & Subsystems
03/05/19 Global Command & Control Technologies (Pty) Ltd African Equity Empowerment Investments Limited Simulation & Training Systems
03/04/19 Onboard Systems International Inc. Liberty Hall Capital Partners, L.P. MRO & Logistics
03/04/19 Island Information Technology Consultants, Inc. Tyto Athene, LLCGovernment Services, IT Services and
Software
03/01/19 Kforce Government Holdings, Inc. ManTech International CorporationGovernment Services, IT Services and
Software
03/01/19 RF Techniques, Inc. Electro Technik Industries Defense Electronics
02/28/19 Decavo LLC HEICO Corporation Components & Subsystems
02/28/19 Florida Turbine Technologies Inc./ FTT Core LLC Kratos Defense & Security Solutions, Inc. Engines & Engine Systems
02/27/19 Hermetic Solutions Group LLC Windjammer Capital Investors LLC Components & Subsystems
02/27/19European Maintenance Activities of Tag Aviation Group (Uk) Ltd
Dassault Aviation SA MRO & Logistics
02/25/19 Thermopylae Sciences and Technology, LLC Hexagon AB (publ)Government Services, IT Services and
Software
02/26/19 Renegade Materials Corporation Teijin Holdings USA, Inc. Composites
Quarterly UpdateQ1 2019
Aerospace & Defense
All Transactions – Value Not Disclosed (continued)
Source(s): CapIQ, Dacis, company reports, press releases
Private Equity SellerPS Private Equity BuyerPBPublic SellerPU Private SellerPR International DealI
17
Announced Date Target Acquiror Segment Deal Type(s)
PR
PS PB
PR
PR I
PR
PR
PS I
PU I
PR PB
PR I
PR PB
PR I
PR I
PR I
PR I
PS PB I
PU
PR I
03/29/19 3D Material Technologies, LLC Aerojet Rocketdyne Holdings, Inc. Engineering and Project Management
03/29/19 Structural Integrity Engineering, Inc. Aernnova Aerospace S.A. Engineering and Project Management
03/28/19 MAP SA BT2i Group Machined & Cast Parts
03/28/19 Cyberhawk Innovations Limited Magnesium Capital Llp Unmanned Vehicles
03/27/19 Skydel Solutions (nka:Orolia Canada Inc.) Orolia SASatellite, Satellite Services & Space
Systems
03/27/19 Newtec Cy NV Singapore Technologies Engineering (Europe) LtdSatellite, Satellite Services & Space
Systems
03/26/19 Systron Donner Inertial Resilience Capital Partners LLC Components & Subsystems
03/26/19 Encore Aviation Pty Ltd MAG DS Corp. MRO & Logistics
03/25/19 Phacil, Inc. By Light Professional IT Services, Inc.Government Services, IT Services and
Software
03/26/19 IBD Ingenieurbüro Deisenroth GmbH Rheinmetall AGSpecialty Defense Systems and
Services
03/22/19 Airstar Aerospace SAS Constructions Industrielles de la MéditerranéeSatellite, Satellite Services & Space
Systems
03/25/19 Hiddn Solutions ASA Energos Group ASGovernment Services, IT Services and
Software
03/19/19 Jagemann Stamping Co.'s Wisconsin Casing Division AMMO, Inc.Specialty Defense Systems and
Services
03/22/19 Alytica LLC CieloGov, LLCGovernment Services, IT Services and
Software
03/18/19 NexDefense, Inc. Dragos, Inc.Cybersecurity, Intelligence Services and
Homeland Defense
03/19/19 Euro-Shelter S.A.S. TOUTENKAMION SASpecialty Defense Systems and
Services
03/14/19 Nuvotronics LLC Cubic Corporation Components & Subsystems
03/18/19 Schafer Intermediate Holdings, LLC Gryphon Technologies LCGovernment Services, IT Services and
Software