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Cubic to Acquire Nuvotronics to Strengthen Protected Communications Offering
Friday 15 March 2019

15 March 2019 - US-based transportation and defence technology provider Cubic Corp. (NYSE: CUB) has acquired Nuvotronics, a technology provider of microfabricated radio frequency products, for approximately USD 64m in cash, the company said.

This deal is subject to customary adjustments, with additional earn-out payments of up to USD8 m based on future performance. 

Cubic said the cornerstone of Nuvotronics' innovation platform is their patented PolyStrata technology, which was developed under DARPA and enables the company to design and produce uniquely packaged RF devices, such as antennas, filters and combiners, all of which are components in Cubic's advanced technology product offerings.

Nuvotronics is based in Durham, North Carolina and has strong customer relationships and partnerships across government agencies, defense primes and commercial sectors.

With the acquisition of Nuvotronics, Cubic expects to accelerate multiple innovation initiatives across Cubic's protected communications portfolio and beyond, and to capture significant supply chain synergies, which are expected to enhance EBITDA beginning fiscal year 2020.

Cubic anticipates the transaction to be accretive to cash earnings per share by the second full year of operations.

The company financed the acquisition from its existing credit facility.

Cubic is a technology-driven, market-provider of integrated solutions that increase situational understanding for transportation, defense C4ISR and training customers worldwide to decrease urban congestion and improve the militaries' effectiveness and operational readiness.
Date Published: 15/03/2019
Target: Nuvotronics
Country: USA
Deal Size: 64m (USD)
Sector: Electronics
Type: LBO
Financing: Cash
Status: Closed
Buyer: Cubic Corp