Herley Acquires Innovative Concepts For $20 Million
Lancaster, PA -- Herley Industries announced today that it has acquired Innovative Concepts, Inc. (ICI), a communications technology development firm specializing in the research, design, development, production, and support of wireless data communications products and services. ICI is an ISO 9001-2001, CMMI Level 3 company. The purchase price was approximately $20 million.
Since its inception in 1985, ICI has provided wireless communications technology and real-time embedded systems, software, hardware, and high-speed processing in support of the defense industry. ICI's core competencies are directly applicable to the increasing defense industry requirements for tactical communications and data processing.
"The acquisition of Innovative Concepts completes our strategy to accumulate the technology that we believe is essential for Herley to successfully compete in the defense industry of the future," Lee N. Blatt, chairman of Herley, stated. "As the world's only super power, the previous U.S. policy of massive retaliation and mutually assured destruction is not the exclusive strategy to be followed in today's environment. Rather, active surveillance of enemies and identifying enemies yet unknown are the military tools needed today. The military requirements of the future involve unmanned forces equipped with precision weaponry with technology that detects and identifies, in real-time, to eliminate terrorist threats.
"Herley has working relationships with companies that provide us with access to unmanned platforms. Our recent acquisition of Micro Systems and the strength and market acceptance of their command and control systems, when combined with Herley's in-house capabilities, create a full line of product solutions to control unmanned platforms.
"The millimeter wave technology Herley acquired last week when we reached a licensing agreement with Lockheed Martin and Xytrans will give Herley the capability to be an active participant in lightweight, precision guided weaponry that will be on next-generation missiles as well as a variety of unmanned platforms.
"The acquisition of Innovative Concepts is the last link in the strategic chain that will enable Herley to provide the data links between the vehicle, the ground stations and the long and growing list of diverse electronic equipment that will need the products Herley now has to offer.
"The acquisition of ICI is an excellent fit for Herley and will provide immediate benefits for both business operations. Herley has strong relationships with the U.S. Navy and Air Force while ICI has strong ties with the U.S. Army. Herley has significant content on fixed-wing platforms, with ICI involvement focused on rotary-wing aircraft. Herley is a hardware oriented company and ICI is a software driven company," Blatt concluded.
With the acquisition of Innovative Concepts completed, Herley now has a staff of more than 1,000 people, including the addition of over 70 software engineers from Innovative Concepts.
Innovative Concepts had revenues in their last fiscal year of approximately $28 million. The company is profitable, and Herley expects the acquisition to be accretive.
Source: Herley Industries