Cubic acquires DTECH LABS, Inc.
December 16 2014 - 4:05PM
Business Wire
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.”
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.
About Cubic Corporation
Cubic Corporation is the parent company of three
major business segments. Cubic Transportation Systems is a leading
integrator of payment and information technology and services for
intelligent travel solutions. Cubic Defense Systems is a leading
provider of realistic combat training systems and secure
communications. Mission Support Services is a leading provider of
training, operations, maintenance, technical and other support
services for the U.S. and allied nations. For more information
about Cubic, see the company's Web site at www.cubic.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that are subject to the safe harbor created by such Act.
Forward-looking statements include, among others, statements about
the anticipated cost of the acquisition, Cubic’s long-term growth
strategy, the likelihood that the acquisition will result in
significant growth opportunities, and expectations regarding the
acquisition being accretive to earnings. These statements are
often, but not always, made through the use of words or phrases
such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,”
“continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,”
“potential,” “opportunity” and similar words or phrases or the
negatives of these words or phrases. These statements involve
risks, estimates, assumptions and uncertainties that could cause
actual results to differ materially from those expressed in these
statements, including, among others: Cubic’s ability to
successfully integrate new companies into its business and to
properly assess the effects of such integration on its financial
condition; competition and technology changes in the industries in
which Cubic does business; and Cubic’s ability to successfully
develop, introduce and sell new products, systems and services in
current and future markets. In addition, please refer to the risk
factors contained in Cubic’s SEC filings available at www.sec.gov,
including Cubic’s most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Because the risks, estimates,
assumptions and uncertainties referred to above could cause actual
results or outcomes to differ materially from those expressed in
any forward-looking statements, you should not place undue reliance
on any forward- looking statements. Any forward-looking statement
speaks only as of the date hereof, and, except as required by law,
Cubic undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date
hereof.
Media contact:Cubic
CorporationSuzanne HatcherDirector of Corporate
Communications858-505-2430suzanne.hatcher@cubic.comorInvestor contact:Cubic CorporationDiane
DyerDirector of Investor
Relations858-505-2907diane.dyer@cubic.com
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