Cubic Corporation has announced the acquisition of Nuvotronics 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 PolyStrata technology, which was developed under DARPA and enables the company to design and produce uniquely packaged radio frequency (RF) devices, such as antennas, filters and combiners, all of which are components in Cubic’s advanced technology product offerings.
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.
“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.