Curtiss-Wright to Acquire Pacific Star Communications, Inc. (PacStar)

 In Americas, Defense, USA

Curtiss-Wright Corporation announced that it has entered into an agree­ment to acquire the stock of Pacific Star Communications, Inc. (PacStar) for $400 mil­lion in cash.

PacStar, a pri­vate com­pa­ny, is a lead­ing provider of tac­ti­cal com­mu­ni­ca­tions solu­tions for bat­tle­field net­work man­age­ment, includ­ing com­mer­cial off-the-shelf (COTS)-based rugged, small form factor com­mu­ni­ca­tions sys­tems, and its pro­pri­etary “IQ-Core® Software” inte­grat­ed net­work com­mu­ni­ca­tions man­age­ment soft­ware.

The acquired busi­ness will oper­ate within Curtiss-Wright’s Defense seg­ment and is expect­ed to gen­er­ate sales in excess of $120 mil­lion in 2020. PacStar is expect­ed to be accre­tive to Curtiss-Wright’s adjust­ed dilut­ed earn­ings per share in its first full year of own­er­ship, exclud­ing first year pur­chase account­ing costs, and pro­duce a strong free cash flow con­ver­sion rate well in excess of 100%.

“The acqui­si­tion of PacStar estab­lish­es Curtiss-Wright as a crit­i­cal sup­pli­er of advanced tac­ti­cal and enter­prise net­work com­mu­ni­ca­tions solu­tions sup­port­ing a broad spec­trum of high-pri­or­i­ty U.S. mil­i­tary force mod­ern­iza­tion pro­grams,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “The com­bi­na­tion of Curtiss-Wright’s mis­sion-crit­i­cal mobile and secure COTS-based pro­cess­ing, data man­age­ment and com­mu­ni­ca­tions tech­nolo­gies with PacStar’s highly com­ple­men­tary hard­ware and soft­ware solu­tions will enable us to deliv­er best-in-class plat­form net­work inte­gra­tion and tac­ti­cal data link net­work man­age­ment to the warfight­er.

“PacStar, which rep­re­sents the largest trans­ac­tion in Curtiss-Wright’s recent his­to­ry, is well-posi­tioned to ben­e­fit from the military’s con­tin­ued invest­ment in robust, secure and inte­grat­ed bat­tle­field net­work man­age­ment and is expect­ed to yield sig­nif­i­cant oppor­tu­ni­ties for rev­enue growth. Further, this acqui­si­tion sup­ports Curtiss-Wright’s finan­cial objec­tives for long-term prof­itable growth and strong free cash flow gen­er­a­tion within our dis­ci­plined and bal­anced cap­i­tal allo­ca­tion strat­e­gy.”

Founded in 2000, PacStar’s solu­tions are uti­lized in mis­sion-crit­i­cal appli­ca­tions, com­bin­ing tac­ti­cal net­work­ing equip­ment and soft­ware to enable enhanced bat­tle­field sit­u­a­tion­al aware­ness down to the indi­vid­ual warfight­er. Their patent­ed soft­ware and hard­ware tech­nolo­gies are core com­po­nents of secure com­mand, con­trol and com­mu­ni­ca­tions sys­tems, par­tic­u­lar­ly in remote or infra­struc­ture-starved areas. PacStar’s net­work man­age­ment soft­ware, IQ-Core Software, pro­vides a sim­pler, faster and more reli­able solu­tion for set­ting up and man­ag­ing net­work com­mu­ni­ca­tions, includ­ing secure wire­less, satel­lite com­mu­ni­ca­tions, and sol­dier-portable sys­tems. PacStar has secured strong posi­tions on crit­i­cal U.S. Army pro­grams, includ­ing Warfighter Information Network-Tactical (WIN‑T) (now PM TN) and Transportable Tactical Command Communications (T2C2), and the U.S. Marine Corps’ Networking-on-the-Move (NOTM) pro­gram.

PacStar, which employs nearly 145 people (30+ engi­neers) and is based in Portland, Oregon, pri­mar­i­ly gen­er­ates sales from the ground defense market. The acqui­si­tion is expect­ed to close in the fourth quar­ter of 2020, sub­ject to reg­u­la­to­ry approval and other clos­ing con­di­tions.

DefPost source|articles

Recommended Posts

Start typing and press Enter to search