Industrial component manufacturer Curtiss-Wright has signed an agreement to acquire the stock of Pacific Star Communications (PacStar) for $400m in cash.
Founded in 2000 and based in Portland, Oregon, US, PacStar focuses on delivering tactical and enterprise communications systems.
The company primarily generates its revenue from the ground defence market by delivering tactical communications solutions for battlefield network management.
As agreed, PacStar will operate within Curtiss-Wright’s Defense segment after the completion of the acquisition. The business is expected to generate sales of more than $120m this year.
Curtiss-Wright chairman and CEO David C Adams said: “The acquisition of PacStar establishes Curtiss-Wright as a critical supplier of advanced tactical and enterprise network communications solutions supporting a broad spectrum of high-priority US military force modernisation programmes.
“The combination of Curtiss-Wright’s mission-critical mobile and secure COTS-based processing, data management and communications technologies with PacStar’s highly complementary hardware and software solutions will enable us to deliver best-in-class platform network integration and tactical data link network management to the warfighter.”
PacStar solutions are used in mission-critical applications for better situational awareness in the battlefields and for communications in remote areas. Its solution portfolio includes IQ-Core Software designed to enable network communications.
The company has won positions on several US Army programmes such as Warfighter Information Network-Tactical (WIN-T) (now PM TN) and Transportable Tactical Command Communications (T2C2).
Adams further added: “PacStar, which represents the largest transaction in Curtiss-Wright’s recent history, is well-positioned to benefit from the military’s continued investment in robust, secure and integrated battlefield network management and is expected to yield significant opportunities for revenue growth.
“Further, this acquisition supports Curtiss-Wright’s financial objectives for long-term profitable growth and strong free cash flow generation within our disciplined and balanced capital allocation strategy.”
The acquisition is expected to complete in the fourth quarter of this year, subject to regulatory approvals and other customary closing conditions.