Nuvotronics acquisition to enhance Cubic Mission Solutions' market-leading portfolio
San Diego, CA /PRNewswire/ -- 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.
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or our future financial and/or operating performance are not historical and may be forward-looking, including, among others, Cubic's strategies to lead next‐generation intelligent traffic solutions and solve the challenges of urban congestion, and the potential to realize synergies and benefits from the acquisition. 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 estimates, assumptions and uncertainties, including, among others: risks associated with the satisfaction of customary closing conditions for the acquisition; the ability to successfully integrate new companies into Cubic's business and to properly assess the effects of such integration on its financial results; competition and technology changes in the industries in which Cubic does business; Cubic's ability to successfully develop, introduce and sell new products, systems and services in current and future markets; and those discussed in "Risk Factors" in Cubic's annual report on Form 10-K for the year ended September 30, 2018 and subsequent quarterly reports on Form 10-Q, that could cause actual results to differ materially from those expressed in these statements. Because the risk factors referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
About Cubic Corporation
Cubic is a technology-driven, market-leading 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. Our teams innovate to make a positive difference in people's lives. We simplify their daily journeys. We promote mission success and safety for those who serve their nation. For more information about Cubic, please visit www.cubic.com or on Twitter @CubicCorp.
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