Cubic Corporation has announced the acquisition of Nuvotronics, a disruptive technology provider of micro-fabricated 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.
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