EDO to Acquire Impact Science & Technology; Provider of Advanced SIGINT & Information Warfare Systems
July 27 2006 - 5:45AM
Business Wire
EDO Corporation (NYSE: EDO) has signed a definitive agreement to
acquire Impact Science & Technology Inc (IST), a privately-held
company that provides Signals Intelligence (SIGINT) systems and
analysis support to the intelligence community, and advanced
countermeasures and electronic-attack systems to the DOD and other
government agencies. EDO will purchase all of the outstanding
shares of the company for $124 million, consisting of a cash
payment of $106 million and an $18 million promissory note to be
paid over three years. This results in a purchase price of $113
million net of the company's cash balance of $11 million at the
time of the offer. The definitive agreement includes a purchase
price adjustment based on changes in the company's net book value
at the time of the closing. In addition, certain senior managers
will receive retention payments in the form of restricted common
shares valued at approximately $9 million. EDO will fund the
acquisition from its current cash balance and its existing $300
million credit facility provided by a bank group led by Citigroup
Global Markets Inc. and Wachovia Capital Markets LLC. The
transaction is expected to close in the third quarter, subject to
the customary closing conditions. IST has approximately 200
employees and is based in Nashua, N.H., with additional operations
in Maryland and Colorado. Revenue for the 12 months ended March 31,
2006 was $63 million. Over the past five years, revenue has grown
at a compound annual growth rate of 60 percent. IST will become
part of the Electronic Systems and Communications reporting
segment, and will be immediately accretive to EDO's earnings. "IST
will greatly increase our presence with key customers in the
intelligence community, DOD, and Homeland Security," said EDO Chief
Executive Officer James M. Smith. "Combining the SIGINT and
advanced countermeasure technologies of IST with EDO's specialized
surveillance, communications, and force-protection products will
strengthen our presence in a number of strategically important,
growing business areas. "IST has some unique capabilities that have
been recognized by its customers. As part of EDO, these
capabilities can be enhanced to an even larger scale." Much of the
work done by IST is classified. The company's products involve
Electronic Intelligence (ELINT) collection and storage systems,
software products, and systems engineering and analysis services
for the intelligence community. IST also provides advanced radar
countermeasures, electronic attack and information warfare systems
for the DOD and other government agencies. About EDO Corporation
EDO Corporation designs and manufactures a diverse range of
products for defense, intelligence, and commercial markets, and
provides related engineering and professional services. Major
product groups include: Defense Electronics, Communications,
Aircraft Armament Systems, Undersea Warfare, Professional and
Engineering Services, and Integrated Composite Structures. EDO's
advanced systems are at the core of the transformation to lighter,
faster, and smarter defense capabilities. With headquarters in New
York, EDO Corporation (www.edocorp.com) employs 3,000 people
worldwide. The company was founded in 1925 and had revenues of $648
million in 2005. Forward-Looking Statements Certain statements made
in this release, including statements about future revenue and
revenue growth, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements are based on current expectations, estimates and
projections about the company's business based, in part, on
assumptions made by management. These statements are not guarantees
of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements due to numerous
factors, including those described above and the following: changes
in demand for the company's products and services, product mix, the
timing of customer orders and deliveries, the impact of competitive
products and services and pricing, and other risks discussed from
time to time in the company's Securities and Exchange Commission
filings and reports. In addition, such statements could be affected
by general industry and market conditions and growth rates, and
general domestic and international economic conditions. Such
forward-looking statements speak only as of the date on which they
are made, and the company does not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of this release.
E D O (NYSE:EDO)
Historical Stock Chart
From Sep 2024 to Oct 2024
E D O (NYSE:EDO)
Historical Stock Chart
From Oct 2023 to Oct 2024