Nuvotronics acquisition to enhance Cubic Mission Solutions’ market-leading portfolio
SAN DIEGO – March 14, 2019 – Cubic Corporation (NYSE: CUB) today announced the acquisition of Nuvotronics, a disruptive technology provider of microfabricated radio frequency (RF) products, for approximately $64 million in cash, subject to customary adjustments, with additional earn-out payments of up to $8 million based on future performance. 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. Cubic financed the acquisition from its existing credit facility.
“Cubic provides integrated mission solutions to solve our customers’ most challenging problems. Nuvotronics’ high-performance, reduced size, weight and power (SWaP) capability further strengthens Cubic’s offering in our high-growth, high-margin Cubic Mission Solutions business,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. “We welcome Nuvotronics to the Cubic family and look forward to integrating their unique technologies, which are highly synergistic with our existing product lines.”
“Nuvotronics' PolyStrata technology will significantly enhance our protected communications business and position Cubic to address additional high-priority, dual-use technology markets in space, electronic warfare, hypersonic and 5G communications,” said Mike Twyman, president of Cubic Mission Solutions.
“With Cubic’s proven track record for rapidly growing C4ISR acquisitions, we are excited about the opportunities to reach new customers at scale,” said Scott Meller, executive vice president, Nuvotronics.
A supplemental slide presentation is available on Cubic’s website at www.cubic.com/investor-relations/events-presentations.