US aerospace and defence engineering firm ITT Exelis has completed its US$16.8m cash acquisition of C4i, an Australian defence communications solutions specialist.
C4i’s IP-based voice control and switching capabilities provide communications…
US aerospace and defence engineering firm ITT Exelis has completed its US$16.8m cash acquisition of C4i, an Australian defence communications solutions specialist.
C4i’s IP-based voice control and switching capabilities provide communications connectivity for dispersed operations personnel. The company has been working with Exelis for a number of years on a variety of projects, including air traffic management solutions, air defence applications, and network on the move projects. C4i will now become part of the Information Systems business of Exelis.
Exelis, which stated that the acquisition does not materially impact its full year financial results, purchased the company from defence-focussed ICT group LongReach Group Limited.
Following the sale, LongReach has effectively become a shell company with A$14.75m cash, A$3.75m held in escrow over the next 21 months and a contingent asset of up to A$2.25m based on C4i achieving certain revenue targets for the 2013 and 2014 financial years.
The board of LongReach stated that it will now spend the next six months looking for ‘a business to purchase that will provide a better return to shareholders than simply winding up’ the company.
