US-based space solar power solutions developer SolAero Technologies Corp has signed a definitive agreement to acquire Alliance Spacesystems, a provider of high-performance composite structures for spacecraft applications.
Financial details were not…
US-based space solar power solutions developer SolAero Technologies Corp has signed a definitive agreement to acquire Alliance Spacesystems, a provider of high-performance composite structures for spacecraft applications.
Financial details were not disclosed. The seller was technology focussed private equity firm Admiralty Partners, which purchased Alliance from MacDonald, Dettwiler and Associates (MDA) back in December 2012.
Based in California, Alliance manufactures and designs composite structures for spacecraft and other high-tech applications where strength-to-weight ratio, superior stiffness and dimensional stability are key requirements. Its customers include Boeing, Lockheed Martin, Orbital Sciences, Space Systems Loral and NASA.
SolAero shares many of these customers, providing solar cells and solar panels to satellite manufacturers such as SSL and Orbital.
The transaction is expected to close in the second quarter of 2015. Post-completion Alliance will be operated as a separate subsidiary from SolAero and will continue to be led by its president Rick Byrens.
SolAero said that the acquisition creates a vertically-integrated satellite subsystem provider capable of offering its satellite OEM customers improved value. The combined company will employ approximately 400 people and generate annual revenue of more than US$100m.
The deal is SolAero’s second vertical acquisition in less than six months having snapped up the space photovoltaics business of Emcore for US$150m.
That deal was carried out through SolAero’s owner, private equity group Veritas Capital. Under the asset purchase agreement, the sponsor set up an investment vehicle called Photon Acquisition Corporation which acquired all of the assets and assumed all of the liabilities of the photovoltaics business. It was subsequently merged into SolAero.
Houlihan Lokey acted as exclusive financial adviser to Alliance on the sale.
