Cobham
Agrees
to
Acquire
US
Trivec-Avant
Corporation,
a
Global
Leader
in
Satellite
Communication
Antennas,
for
US$126
Million
Cobham
plc
has
agreed
to
acquire
US-based
Trivec-Avant
Corporation
(‘Trivec’),
a
leading
global
supplier
of
sophisticated
UHF
satellite
communication
(SATCOM)
antenna
systems.
Trivec’s
SATCOM
technology,
product
range
and
customer
base
are
highly
complementary
to
Cobham’s
Antenna
Systems
strategic
business
unit.
The
acquisition
is
in
line
with
Cobham’s
strategy
to
build
scale
in
its
target
markets
and
deepen
its
investment
in
highly
differentiated
technology.
Cobham
will
acquire
the
entire
share
capital
of
privately
owned
Trivec
for
a
cash
consideration
of
US$126
million,
payable
on
completion,
on a
debt
and
cash
free
basis.
An
additional
cash
consideration
of
up
to
US$18
million
is
payable
between
2013
and
2014,
contingent
on
future
performance.
Subject
to
regulatory
approvals,
the
acquisition
is
expected
to
complete
during
the
fourth
quarter
of
2011
,
Information
on
Trivec-Avant
Trivec
has
industry
leading
expertise
in
the
field
of
Satellite
Communication
(SATCOM)
antennas
for
communications
on
the
move,
including
next
generation
network-centric
warfare.
It
specialises
in
ultra
high
frequency
(UHF)
SATCOM
and
steerable
technologies,
which
permit
low
to
horizon
communication
in
adverse
terrain
and
in
demanding
military
and
emergency
response
missions.
It
has
a
suite
of
over
400
high
quality
antenna
designs,
which
are
used
in
ground,
airborne
and
maritime
applications.
Rationale
and
Benefits
of
the
Transaction
Trivec’s
SATCOM
technology
is
complementary
to
the
existing
range
of
antenna
products
in
Cobham’s
Antenna
Systems
strategic
business
unit
and
will
be
managed
within
this
business
as
part
of
the
Group’s
Aerospace
and
Security
Division.
The
acquisition
of
Trivec
brings
new
SATCOM
market
leading
technology
capabilities
to
Cobham’s
existing
SATCOM
antenna
technology
and
product
range,
particularly
UHF
technology
used
in
land,
sea
and
airborne
applications.
The
acquisition
is
consistent
with
Cobham’s
strategic
objectives
of
building
scale
in
all
its
markets
and
investing
in
differentiated
technology.
Trivec
has
long
established
customer
relationships
built
on
the
reputation
of
its
products
for
high
performance
and
quality.
Cobham’s
complementary
portfolio
of
products
and
customer
relationships,
together
with
the
Group’s
international
presence
and
multiple
routes
to
market,
are
expected
to
increase
sales
activity
within
the
US
and
internationally.
There
is
also
potential
for
Trivec’s
technology
to
be
developed
for
specific
commercial
and
security
applications,
leveraging
Cobham’s
diversified
customer
base
and
technology
capabilities.
Financial
Information
For
the
year
ended
31
December
2010,
Trivec
generated
operating
profits
of
US$22.4
million
and
EBITDA
of
US$22.6
million.
At
31
December
2010
Trivec
had
gross
assets,
excluding
debt
and
cash,
of
US$11.7million.
After
an
allowable
expense
relating
to
goodwill
amortisation
(see
note
3)
Cobham
is
paying
4.5x
2010
EBITDA,
in
part
reflecting
the
fact
that
2010
was
a
year
with
exceptionally
high
land
sales.
It
is
expected
that
the
acquisition
will
be
immediately
earnings
enhancing
and
will
cover
its
cost
of
capital
in
the
first
year
of
ownership.
Andy
Stevens,
Cobham
Chief
Executive
Officer,
said:
"The
acquisition
of
Trivec-Avant
Corporation
brings
us a
range
of
SATCOM
antenna
products
and
communication
related
technologies
that
are
highly
complementary
to
our
existing
business,
together
with
opportunities
to
win
further
work
from
a
long
established
customer
base,
as
well
as
from
our
multiple
routes
to
market."
