Aerospace component manufacturer Heico Corporation is to acquire satellite communications payloads developer Lucix for an undisclosed amount.
Heico stated that it will pay cash for Lucix and that there is an earnout based on Lucix meeting certain…
Aerospace component manufacturer Heico Corporation is to acquire satellite communications payloads developer Lucix for an undisclosed amount.
Heico stated that it will pay cash for Lucix and that there is an earnout based on Lucix meeting certain performance criteria. Heico added that it expects the acquisition to be accretive to its earnings within the first year from closing.
The transaction is subject to expiration of the regulatory waiting period and is expected to close within 60 days.
Founded in 1999 and headquartered in California, Lucix’s products include converters, receivers, transmitters, amplifiers, frequency sources and related sub-systems. The majority of its revenue is derived from commercial satellite payload hardware and its products can be found on more than 40 orbiting GEO satellites as well as the forthcoming Inmarsat Global Xpress, NBN, Jabiru-1 Ka-band satellites.
In May of this year, Lucix announced that it had completed the expansion of its space hardware facility, effectively doubling its manufacturing and test areas, as well as its capacity.
The company, which was advised on the transaction by Moelis & Company, was previously owned by management and three venture capital funds: Palisades Ventures, Saints Capital and Shepherd Ventures.
Laurans Mendelson, Heico’s chairman and chief executive officer, commented, “Lucix is another perfect fit for Heico. This acquisition expands our very successful satellite and space component operations by adding a team of some of the world’s most admired designers and makers of satellite electronics. Mark Shahriary, a rare talent, together with his highly respected and talented team are well known experts in satellite design and production.”
Lucix’s CEO Shahriary, who along with his management team will remain in their positions post-transaction, added, “We couldn’t be happier that we chose Heico to be our new parent. They understand the absolute requirements for quality, service and innovation, while also understanding the importance of allowing Lucix to continue operating in the same manner as it has been run for many years. Joining with Heico will also allow us to pursue many new opportunities.”
Heico’s Electronic Technologies Group designs and manufactures simulation, testing and calibration equipment for space-based sensors and microwave products used in both commercial and military satellites. The latter are used in satellites and spacecrafts to control or direct energy according to operator needs.
