TeraLogics & GTAR acquisitions will expand C4ISR & SATCOM capabilities for Cubic
NewsDecember 22, 2015
SAN DIEGO. Officials at Cubic Corp. have signed a definitive agreement to acquire GATR Technologies, Inc. (GATR) and announced the acquisition of TeraLogics, LLC. The purchase price for TeraLogics is $39 million, including $9 million of contingent consideration, and subject to other customary adjustments per the terms of the stock purchase agreement. GATR’s purchase price is $232.5 million, including $7.5 million of contingent consideration, and subject to customary pre- and post-close adjustments.
By investing in TeraLogics, Cubic expands its portfolio in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) portfolio focused on secure and expeditionary communications, and ISR Processing, Exploitation and Dissemination (PED). TeraLogics is a g provider of real-time Full Motion Video PED for the Department of Defense, the intelligence community based in Ashburn, Virginia.
GTAR – based out of Huntsville, Alabama – expands Cubic’s portfolio in satellite communications (SATCOM) and networking applications. The closing of the GATR acquisition is subject to regulatory approval under Hart-Scott-Rodino and is expected in Cubic’s second fiscal quarter 2016.
“The acquisition of TeraLogics and GATR represents powerful next steps in achieving our C4ISR growth strategy as they expand our footprint in the C4ISR and SATCOM markets,” says Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. “The transformation of Cubic Global Defense Systems is well under way with these acquisitions, coupled with the excellent performance from DTECH, which we acquired in fiscal year 2015. Having established a focused strategy in the C4ISR sector, we are working aggressively to build scale with increased shareholder returns in higher growth and higher margin markets.”
Cubic’s investments in its C4ISR portfolio, including DTECH, GATR, and TeraLogics, are anticipated to be accretive in fiscal year 2017.
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