DAVIDSON, N.C.--(BUSINESS WIRE)--Curtiss-Wright Corporation (NYSE: CW) today announced that it has completed the acquisition of Pacific Star Communications, Inc. (PacStar®) for $400 million in cash. PacStar is a leading provider of secure tactical communications solutions for battlefield network management, including commercial off-the-shelf (COTS)-based rugged, small form factor communications systems, and its proprietary “IQ-Core® Software” integrated network communications management software.
The acquisition establishes Curtiss-Wright as a critical supplier of advanced tactical and enterprise network communications solutions supporting a broad spectrum of high-priority U.S. military force modernization programs. 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 the delivery of best-in-class platform network integration and tactical data link network management to the warfighter. In addition, it ensures that the Company is well-positioned to benefit from the military’s continued investment in robust, secure and integrated battlefield network management.
The business will operate within Curtiss-Wright's Defense segment. The acquisition supports Curtiss-Wright's financial objectives for long-term profitable growth and strong free cash flow generation. PacStar is expected to generate sales in excess of $120 million in 2020 and is expected to yield significant opportunities for revenue growth. Further, it is expected to be accretive to Curtiss-Wright's adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate well in excess of 100%.
Founded in 2000, PacStar’s solutions are utilized in mission-critical applications, combining tactical networking equipment and software to enable enhanced battlefield situational awareness down to the individual warfighter. Their patented software and hardware technologies are core components of secure command, control and communications systems, particularly in remote or infrastructure-starved areas. PacStar’s network management software, IQ-Core Software, provides a simpler, faster and more reliable solution for setting up and managing network communications, including secure wireless, satellite communications, and soldier-portable systems. The business has secured strong positions on critical U.S. Army and U.S. Marine Corps programs. PacStar employs approximately 145 people.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 8,300 people worldwide. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for the future opportunities associated with the acquisition, the 2020 financial forecast for PacStar, the success of transferring PacStar’s technology throughout our existing world-wide network, and the success of Curtiss-Wright integrating PacStar into its Defense segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.
