It was announced on December 21st by Cubic Corporation that they will be expanding their C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) offerings by acquiring TeraLogics, LLC and signing a definitive agreement to acquire GATR Technologies, Inc.
Mike Twyman, Executive Vice President, Communications, Intelligence and Surveillance Systems of Cubic Global Defense said, “We look forward to working with the TeraLogics and GATR leadership teams and employees. Their collective expertise, talent and innovative cultures will be an asset to Cubic, allowing us to better serve our customers.”
TeraLogics, a leading provider of real-time Full Motion Videao PED for the Department of Defense was purchased for $39 million, including $9 million of contingent consideration. With the acquisition of TeraLogics Cubic’s ability to reach customers and bid on new contracts will be extended. KippsDeSanto & Co. represented TeraLogics in its deal with Cubic.
“Cubic’s acquisitions of TeraLogics and GATR demonstrate their confidence in the Defense/Intel market overall as well as their willingness to use their balance sheet strength to create critical mass in C4ISR, one of the fastest growing areas in the market,” said Bob Kipps, Managing Director at KippsDeSanto & Co.
GATR, manufacturer of next-generation deployable satellite communication terminal solutions entered into a definitive purchase agreement with Cubic for a price of $232.5 million, including $7.5 million in contingent consideration. With the acquisition of GATR Cubic will be expanding its technology leadership in satellite communications (SATCOM) and networking applications. The closing of the GATR acquisition is expected to be completed in Cubic’s second fiscal quarter 2016.
Bradley H. Feldmann, President and Chief Executive Officer of Cubic Corporation said, “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. 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.”
