Canadian space hardware maker Com Dev has bought Californian manufacturer Pacific Wave Systems for US$20.1m to enter the waveguide industry.
The group aims to integrate PWS’ waveguide products, which direct electromagnetic signals between various…
Canadian space hardware maker Com Dev has bought Californian manufacturer Pacific Wave Systems for US$20.1m to enter the waveguide industry.
The group aims to integrate PWS’ waveguide products, which direct electromagnetic signals between various satellite-based components, with its other space solutions to meet increasing demand for high throughput services.
David Biele, president of PWS, said: “We anticipate the introduction of high throughput satellites to drive a significant increase in demand for waveguides.
“We will be well positioned to capture and deliver on these larger orders as part of a major organisation with Com Dev’s reputation.”
It it the latest acquisition aimed at expanding Com Dev’s core space equipment business in growth markets.
In December the group paid £12.8m (US$20.1m) though cash on hand and existing debt to take over UK-based MESL Microwave, which designs and manufactures components and subsystems for the radar, communications, defence and aerospace industries.
For its waveguide deal, Com Dev is using a mix of cash on hand and an acquisition term debt facility. About 10% of the purchase price represents the equity interest of the PWS management group, with payment deferred and partly tied to performance targets over the next four years.
It said the deal represents a multiple of 6.9 times adjusted EBITDA for PWS’s most recent fiscal year ended February 2015.
The Black Box Institute financial advised Com Dev for the transaction, and its legal advisers included Gardiner Roberts and TroyGould PC.
The companies expect to close the deal in Q3 2015.
