Q2 2016 Market Update - Aronson LLC · contracts awarded in the C4ISR market during the second...

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Larry A. Davis Partner

(301) 231-6225

[email protected]

Philip J. McMann Partner

(301) 231-6202

[email protected]

Tim P. Schmitt Vice President (301) 222-8285

[email protected]

Q2 2016 Market Update Aerospace, Defense Technology &

Government Services

http://www.aronsonllc.com/

Pockets of Growth in the Federal Market


In spite of relatively stagnant growth prospects across the defense and government services market, there

are sub markets that continue to experience outsized growth, including Cybersecurity, C4ISR, Data

Analytics and Healthcare IT. The forecasted growth in these sub segments is outpacing the broader federal

IT outlook and is therefore driving M&A activity. For example, contractors with IT capabilities focused

on protecting the nation’s critical infrastructure have realized billions in procurement dollars via the

President’s new government-wide cybersecurity initiatives. Furthermore, there were transformative

contracts awarded in the C4ISR market during the second quarter, as the Department of Defense (DoD)

continues to take aim at developing technologies and supporting operations that disrupt, deter and deny

global terrorist activities. Healthcare IT continues to be a strategic focus area as the U.S. government

ramps up federal funding in the areas of patient care, fraud and waste reduction, and IT systems integration

and cost efficiencies. Finally, big data analytic contractors will benefit from the growth in cybersecurity,

C4ISR and Healthcare IT as government agencies will depend on tools that help process, analyze,

manipulate and disseminate large datasets in order to make better and more informed decisions.

Federal Initiatives Spawn Cybersecurity Spending and M&A

During the first half of 2016, the U.S. government made significant progress in improving its cybersecurity

posture, beginning with President Obama’s Cybersecurity National Action Plan (CNAP) unveiled in early

February. The President has requested from Congress an additional 35% in funding for cybersecurity

programs which would result in over $19 billion for implementation beginning in 2017. The President

called for the creation of a Chief Information Security Officer (CISO) role to lead federal cyber initiatives,

which is expected to be filled before the end of the U.S. government’s fiscal year. In addition, the U.S.

government has hired 3,000 cybersecurity IT professionals over the past six months, and plans to hire an

additional 3,500 professionals by January 2017. The ramp-up in hiring is in response to the increasingly

sophisticated and persistent cyber threats that pose strategic, economic and security challenges to the U.S.

The emphasis on cybersecurity is evident in recent award activity. In Q2, the DoD awarded over 30

contracts with a cybersecurity focus. This award data ignores Intelligence Community awards which are

infrequently publicly disclosed. Favorable market fundamentals across the cybersecurity market have

propelled M&A activity, as buyers target access to new cyber skillsets (e.g., CNA, CND, C&A) or

customer access.

Cybersecurity – Notable New Contracts

PoP Customer Service Value Awardee # Capabilities

2016-

2021

Mission Support IDIQ $460M 6

US Cyber Command is acquiring intelligence,

research, cyberspace operations, development,

testing, evaluation, joint operation planning,

training and exercises, and business services.

2016 –

2018

Continuous

Diagnostics and

Mitigation (CDM)

Program – CmaaS

Phase 2

$111M 1

ManTech (via Knowledge Consulting Group

acquisition) was awarded two task orders under

phase 2 of the CDM program, to provide

specialized IT services and tools to ensure federal

employees and contractors with elevated privileges

are accessing the federal IT system utilizing the

appropriate secure methods.

2016 –

TBD

Cyber Contracts

supporting classified

DoD and U.S. Federal

Government

Customers

$45M 1

MacAulay-Brown, Inc. cyber professionals will

provide Host-Base Security System management,

computer network defense, network engineering

and operations as well as threat and malware

analysis.




Cybersecurity Notable Q2 M&A Activity

Federal Data Systems, Inc. (FedData) Acquires Counterintelligence and Intelligence Business Units

of Intelligent Decisions, Inc.

In late May, FedData acquired the business unit from Intelligent Decisions in an effort to expand threat

insider and critical infrastructure support for commercial and government organizations. This acquisition

extends FedData’s reach into the private sector and expands upon its capabilities in cyber within the

Intelligence Community.

Altamira Technologies Corp. Acquires Prime Solutions, LLC

Altamira Technologies acquired Prime Solutions in early May, expanding their portfolio of cyber

capabilities. Prime Solutions specializes in System Vulnerability Analysis, Reverse Engineering, CNO

Software Development, Network Engineering and Defense, Malware Analysis, and Defensive

Vulnerability Analysis.

ManTech International Corporation Acquires the Cyber Business Unit of Oceans Edge, Inc.

ManTech International Corporation acquired Oceans Edge, Inc. in mid-June to expand the Company’s

advanced cybersecurity capabilities. The acquisition will add additional vulnerability research,

development and analysis capabilities to ManTech, and will position the Company to provide advanced

CNO capabilities with sophisticated intelligence and analytics. The acquisition will also increase

ManTech's significant presence in this highly sought after segment of the U.S. government cyber solutions

market to include service components of U.S. Cyber Command.

New C4ISR Technologies Drive Q2 Awards

There were a number of sizable contracts in the Command, Control, Communications, Computers,

Intelligence, Surveillance and Reconnaissance (C4ISR) space awarded in Q2. Harris Tactical

Communications was awarded a five year IDIQ worth up to $1.7 billion to provide the US Army with

tactical radios and ancillary items in Afghanistan. Lockheed Martin won a $1.8 billion contract with the

DLA providing advanced systems support on the F-16, C-5, C-130, F-35, MH-60, P-3, F-22, Patriot

Guidance Enhanced Missile, and other weapons systems. This comes on the heels of the Company’s $1.1

billion NAVSEA win at the end of March. In addition, there have been multiple, large contracts awarded

that focus on geospatial intelligence and information services, satellite and joint space communications,

electronic warfare, radio frequency (RF) communications, and advanced systems engineering

technologies that are addressed by only a few select contractors.

Despite billions of commitments to the federal government’s largest contractors, C4ISR opportunities

were ample for small contractors as well. Five firms (EOIR, Physical Optics Corporation, S2 Corporation,

SI2 Technologies, and Systems Engineering Associates) with under 500 employees were included in the

Office of Naval Research’s $900 million Electromagnetic Maneuver Command & Control (EMC2)

Program. Meanwhile, more than half of the companies that were awarded seats on the SPAWARSYSCEN

COTS C2 contract have less than 200 employees. Accordingly, M&A interest in the C4ISR arena remains

robust as demonstrated by two new platform investments made in Q2 by industry focused private equity

firms, DC Capital Partners and Arlington Capital.




C4ISR Notable Q2 M&A Activity Arlington Capital Partners Acquires EOIR Technologies, Inc. from The White Oak Group, Inc.

In late June, advanced C4ISR IT provider EOIR was acquired by Arlington Capital Partners from The

White Oak Group. EOIR specializes in advanced electronic warfare technology, including Smart Sensors,

Video Analytics and other Intelligence, Surveillance and Reconnaissance technologies. The acquisition

gives Arlington a new platform with valuable new contracts at US Army CERDEC and the Office of

Naval Research. This acquisition by Arlington follows its successful investment in Novetta Solutions,

which it sold to the Carlyle Group in 2015.

DC Capital Partners, LLC Acquires QRC Technologies, Inc.

DC Capital Partners announced in May that they acquired RF hardware and software provider QRC

Technologies. QRC develops and produces survey tools for cellular communication systems, phone based

measurement, stimulation tools, forensic tools, and integrated RF recording and playback equipment. With

QRC, DC Capital has acquired a platform with a proven and experienced management team and a highly

skilled workforce that has an established track record of providing advanced Signal Intelligence and

Communications Intelligence products.

C4ISR – Notable New Contracts


2016 –

2026

Aviation and Missile

Command Contracts

for Various Weapon

Systems Consumable

and Depot Level

Repairables

$1,800M 1

Sole source opportunity with Lockheed Martin to

provide worldwide support of high, medium and low

demand consumable and Depot Level Repairable

(DLR) NSNs covering various Federal Stock Classes

(FSCs) supporting the following (but not limited to)

platforms: F-16, C-5, C-130, F-35, MH-60, P-3, F-

22, Patriot Guidance Enhanced Missile.

2016 –

2021

Tactical Radios,

Ancillary Items and

Services IDIQ for the

FMS Program

$1,700M 1

Harris Family of Tactical HF, VHF, UHF and Multi-

band Radios, ancillary items, installation kits, spare

parts, operation and maintenance training, field

service representatives, site surveys/site preparation,

system installation services, and maintenance

support services.

2016 –

2021

Electomagnetic

Maneuver Warfare

Command and Control

(EMC2)

$900M 12

Development of hardware and software systems that

integrate RF functionality for Electronic Warfare,

Radar, Comms and Information Operations into

combat and C4ISR systems.

2016 –

2021

COTS Command and

Control (C2)

Equipment and

Related Support

Services IDIQ

$750M 21

Task orders will be issued to provide COTS

equipment and support services for the Navy,

including video, imagery, GPS, intelligence support,

tactical and intercom systems.

2016-

2021

Counter Narco-

Terrorism Program

Office (CNPTO)

Training Services

Support IDIQ

$480M 4

CNTPO Command, Control, Communications,

Information, Detection & Monitoring (C3IDM)

support services. The CNTPO acts as a multi-agency

and multinational organization developing

technologies and operations that disrupt, deter and

deny narco-terrorist activities.

2016-

2021

Persistent Surveillance

– Intelligence

Surveillance and

Reconaissance (PS-

ISR) Supprot Services

$249M 9

The ACC-APG, on behalf of the ARL Sensors and

Electron Devices Directorate (SEDD) awarded nine

contracts for PS-ISR capabilities. The mission of the

ARL-SEDD is to research, develop, and operate

sensors and electron devices to ensure U.S. military

superiority and to provide effective intelligence and

information tools.




Enterprise-Wide Adoption of Data Analytics Will Continue in 2016 Government agencies are amassing large amounts of structured and unstructured data, resulting in greater

demand for analytics software programs to process information to make better decisions. As the Internet

of Things gains even more momentum, the desire to synthesize and process data will drive additional

growth in funding across Healthcare, Intelligence / DoD, and other Federal / Civilian agencies.

There was notable contract award activity specifically focused on predictive analytic services and

advanced modeling during Q2 2016. For example, Northrop Grumman Information Systems was awarded

the Fraud Prevention System – Version 2 award to deliver predictive modeling capabilities for CMS to

improve patient care and prevent fraud and waste. In addition, DIA awarded GeoEye Analytics the

Management and Maintenance of All-Source Geospatial Predictive Analysis Services to provide their

subject matter expertise in gathering, analyzing and manipulating data for geospatial predictive modeling.

Applying data analytics tools will help both agencies and contractors better navigate a rapidly expanding

cybersecurity market, converge an increasing number of decentralized ISR systems, and improve patient

care and prevent healthcare fraud and waste. Acquisitive strategic buyers continue to realize the power of

these tools and growth outlook in these markets as demonstrated in Q2 with IBM’s $2.6 billion acquisition

of Truven Health Analytics, Inc. and Jacobs Engineering acquisition of The Van Dyke Technology Group.

Data Analytics Notable Q2 M&A Activity

Jacobs Engineering Group, Inc. Acquires The Van Dyke Technology Group, Inc.

In mid-April Jacobs Engineering made an acquisition to strategically boost their advanced cyber and data

management competencies. Van Dyke Technology is an industry leader in identity and access

management, threat mitigation and other cybersecurity solutions primarily for the Intel Community.

IBM Closes its Acquisition of Truven Health Analytics, Inc.

In early April, IBM Watson Health closed on its acquisition of Truven Health Analytics, a leading provider

of cloud-based healthcare data, analytics and insights. IBM’s health cloud now houses one of the world’s

largest and most diverse collections of health related data, representing an aggregate of approximately 300

million patient lives. IBM plans to integrate Truven’s extensive cloud-based data set spanning hundreds

of different types of cost, claims, quality and outcomes information with its existing data sets.

Data Analytics – Notable New Contracts


2016 –

2021

Fraud Prevention

System - Version 2

(FPS2)

$92M 1

CMS awarded Northrop Grumman Information

Systems the version 2 FPS contract, which is being

undertaken to enable more efficient time-to-market

for predictive models, better monitoring models

and the ability to leverage more advanced

modeling paradigms.

2016 –

2021

Development of Next-

Gen Geospatial

Intelligence

Capabilities

$75M 1

BAE specialists will support INSCOM’s Military

Intelligence Brigade in the exploitation and

processing of geospatial data and development of

intelligence collection systems and technologies.

2016 –

2021

Management and

Maintenance of All-

Source Geospatial

Predictive Analysis

Services

$55M 1

The DIA Virginia Contracting Activity awarded

GeoEye Analytics the management and

maintenance contract that includes services related

to gathering, analyzing and manipulating data for

geospatial predictive modeling.




Patient Care and Efficiency Take Center Stage

Healthcare agencies continue to prioritize patient care, fraud and waste reduction, and IT cost efficiencies.

In fact, the 2015 HHS Financial Report estimates that from 2014 to 2018 over $75 billion will be wasted

annually on improper benefits payments. In May, CMS awarded seven positions on the Unified Program

Integrity Contract (UPIC) Program. Contractors on this program will support CMS to detect, prevent and

deter risks and vulnerabilities of the Medicare and Medicaid programs. Awardees were selected for their

ability to upgrade CMS’ outdated billing approaches along with innovations in electronic health records

(EHRs).

To improve the patient to provider experience CMS has developed the Federal Healthcare Exchange

alongside Medicare and Medicaid. The new Strategic Partners Acquisition Readiness Contract (SPARC)

is the recompete of the predecessor Enterprise System Development (ESD) contract and tasks contractors

with planning, designing, developing, testing, implementing, coordinating, and maintaining the software

behind the communication technologies. The $25 billion program will integrate innovative IT concepts

such as agile software development, and has a significantly higher ceiling that the $4.0 billion ESD

vehicle.

Healthcare Notable Q2 M&A Activity

DLH Holdings Corp. Acquires Danya International, Inc.

In early May DLH Holdings announced the acquisition of Danya International, Inc., a provider of

monitoring and evaluation services. The Silver Spring, MD based company provides monitoring,

compliance, valuation, communications, training, and technical assistance services primarily to federal

health customers. Danya works on the flagship prime supporting the HHS’ Head Start program for

monitoring and evaluation of grants, along with four other IDIQ vehicles supporting HHS or CDC.

Healthcare IT – Notable New Contracts


2016 –

2026

Strategic Partners

Acquisition

Readiness Contract

(SPARC) Program

$25,000M 81

Support the CMS and other healthcare agencies

plan, design, develop, test, implement, operate,

coordinate, and maintain automated systems and

business application software. Vendors will help

establish systems to support CMS’s Medicare

program which processes over 1.2 billion claims

annually.

2016 –

2026

Transformation

Twenty-One Total

Technology Next

Generation (T4NG)

Acquisition Program

$22,300M 21

Follow on to T4, T4NG will support the VA and

other federal agencies with IT services, including

program management, systems/software

engineering, software technology and transition,

testing and evaluation, independent verification

and validation, cybersecurity, and training.

T4NG’s most critical mission will be facilitating

the transition to MyVA, the largest

reorganization in the VA’s history which aims to

improve care for veterans.

2016 –

2026

Unified Program

Integrity Contract

(UPIC) Program

$2,500M 7

Contractors will perform numerous functions to

detect, prevent and deter specific risks and

broader vulnerabilities to the integrity of the

Medicare and Medicaid programs.


Select M&A Transactions


Arlington Capital Partners Acquires EOIR Technologies, Inc.

On June 24, Arlington Capital Partners announced its acquisition of Fredericksburg, VA based

EOIR Technologies from The White Oak Group. EOIR provides advanced cloud computing,

big data analytics, advanced visualization, C4ISR, spectrum-related information dominance,

smart sensing, training and simulation services to the Department of Defense and Intelligence

Community.

Arlington Managing Partner Michael Lustbader said, “As an early mover in smart sensors,

video analytics and directed energy research, EOIR is well-positioned to address the country’s

key technical priorities. We plan to grow the company through complementary strategic

acquisitions to create a mid-sized, agile platform that is focused on delivering differentiated

solutions to the national security community. Through a mix of organic and inorganic

investments, EOIR will expand its capabilities into new areas for broader support of the current

customer base, as well as bring EOIR’s deep technical expertise into new markets.” Terms of

the transaction were not disclosed. EOIR Technologies has approximately 400 employees in

11 offices in the US and on client sites internationally.

DC Capital Acquires QRC Technologies, Inc.

On May 24, QRC Technologies announced that it had been acquired by Alexandria, VA based

DC Capital Partners. QRC specializes in RF test and measurement products, producing survey

tools for cellular communication systems, phone based measurement, stimulation tools,

forensic tools, and integrated RF recording and playback equipment.

Thomas J. Campbell, Founder and Managing Partner of DC Capital and the new Chairman of

QRC said, “QRC has all the attributes that we look for in a company - a proven and experienced

management team, a highly skilled workforce with significant subject matter expertise, a

portfolio of highly differentiated and innovative solutions, a brand that represents our goal of

excellence, and a scalable platform for growth.” Terms of the transaction were not disclosed.

QRC has approximately 70 employees and will remain headquartered in Fredericksburg.

KBR, Inc. Acquires Wyle Laboratories, Inc.

On May 23, KBR announced the acquisition of Wyle Laboratories. Wyle is a provider of

specialized engineering, and professional, scientific and technical services to the US

Department of Defense, NASA and other federal agencies.

KBR CEO and President Stuart Bradie said about the transaction, “Expanding our government

services capabilities and service offerings into more profitable and complementary market

segments is a key part of KBR’s growth strategy.”

"Adding Wyle's highly specialized and differentiated offerings to our global government

services portfolio improves KBR's overall risk profile by expanding into other government

funding sources for higher-margin and largely cost-reimbursable work," Bradie continued.

The purchase price was $570 million for 100% of the business1, or 8.5x Enterprise Value to

2015 Adjusted EBITDA. F through a line of credit and $200 million of cash on hand. The

transaction is expected to be immediately accretive to KBR’s earnings.

1 Adjusting for approximately $30.0 million of acquired tax benefits

Acquirer

Acquirer

Target

Target

Acquirer

Target


Public Company Comparables


Last 12-Month Returns

Last 12-Month Enterprise Value / EBITDA

Source: CapIQ Mid-Tier Index: BAH, LDOS, CACI, MANT, EGL, ICFI, KEYW, VEC, VSEC, NCIT Tier-1 Index: BA, LMT, GD, RTN, NOC, LLL Defense Index: COL, LLL, HRS, COB, OA, TDY, FLIR, ULE, CUB, KTOS, MRCY, AVAV Aircraft - OEM: UTX, BA, A, GD, SAF, FNC, ERJ, AM, TXT, B, CAE, Aircraft - Suppliers & Aftermarket: PCP, TDG, COL, HO, HXL, TGI, CW, ESL, HEI, MOG.A, ULE

40

60

80

100

120

Jul-15 Oct-15 Feb-16 Jun-16

Inde

xed

Perf

orm

ance

LTM 6/30/2016 Returns

Tier-1: 23.3%

Mid-Tier: 16.7%

S&P: 1.1%

Defense System/Electronics : -0.9%

Aircraft - Suppliers & Aftermarket: -9.5%

Aircraft - OEM: -13.9%

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

14.0x

Jul-15 Oct-15 Feb-16 Jun-16

Ente

rpri

se V

alue

/LTM

EBI

TDA

6/30/2016 EV/LTM EBITDA

Defense System/Electronics : 12.1x

Aircraft - Suppliers & Aftermarket: 11.0x

Aircraft - OEM: 9.6x

Tier-1: 12.7x

Mid-Tier: 9.6x




USD in Mi l l ions , exc luding share prices

En terprise LTM LTM

Company Value Rev. EBITDA Rev. EBITDA Rev. EBITDA CY15A CY16P CY15A CY16P

Mid-Tier Federal Service Providers

CSRA Inc. 6,660$ 4,250$ 488$ 1.6x 13.7x 1.3x 7.6x 15.3% 17.1% NA 28.5%

Booz Allen Hamilton Holding Corporation 5,801 5,406 506 1.1x 11.5x 1.0x 10.5x 9.3% 9.5% (0.1%) 4.6%

Leidos Holdings, Inc. 3,961 5,206 450 0.8x 8.8x 0.7x 9.5x 8.4% 8.6% NA 0.7%

CACI International Inc. 3,666 3,496 325 1.0x 11.3x 0.9x 10.2x 9.2% 8.5% (2.9%) 23.6%

Science Applications International Corporation 3,534 4,521 341 0.8x 10.4x 0.8x 10.4x 7.3% 7.5% 11.1% 5.8%

Engility Holdings, Inc. 1,845 2,206 219 0.8x 8.4x 0.9x 9.6x 8.7% 8.7% 52.6% 0.6%

ManTech International Corporation 1,366 1,570 119 0.9x 11.5x 0.8x 10.8x 7.5% 7.6% (12.6%) 4.8%

ICF International Inc. 1,106 1,142 109 1.0x 10.1x 0.9x 9.2x 9.6% 10.0% 7.8% 3.5%

VSE Corp. 604 557 79 1.1x 7.6x 1.2x NA 14.4% NA 25.9% NA

The KEYW Holding Corporation 483 317 1 1.5x NA 1.6x 13.9x (0.0%) 11.5% 7.3% (4.0%)

Vectrus, Inc. 374 1,230 49 0.3x 7.7x 0.3x 7.8x 3.9% 4.0% (1.9%) 0.5%

NCI, Inc. 210 336 30 0.6x 7.1x 0.6x 7.0x 8.6% 8.9% 5.1% 2.8%

Mean 1.0x 9.8x 0.9x 9.7x 8.5% 9.3% 9.2% 6.5%

Median 0.9x 10.1x 0.9x 9.6x 8.7% 8.7% 6.2% 3.5%

Tier 1 Prime Contractors

Lockheed Martin Corporation 89,379$ 47,723$ 6,727$ 1.9x 13.3x 1.8x 12.7x 13.6% 13.9% 1.2% 9.5%

The Boeing Company 84,442 96,597 8,778 0.9x 9.6x 0.9x 8.0x 9.4% 11.1% 5.9% (2.4%)

Northrop Grumman Corporation 45,221 23,525 3,506 1.9x 12.9x 1.9x 13.1x 15.1% 14.4% (1.9%) 1.1%

General Dynamics Corporation 44,051 31,409 4,679 1.4x 9.4x 1.4x 9.3x 14.8% 15.0% 2.0% 0.7%

Raytheon Company 43,577 23,722 3,253 1.8x 13.4x 1.8x 11.4x 14.1% 15.0% 1.8% 5.2%

L-3 Communications Holdings Inc. 14,463 10,331 1,159 1.4x 12.5x 1.4x 12.0x 10.7% 12.0% (4.7%) (3.3%)

Mean 1.6x 11.8x 1.5x 11.1x 12.9% 13.5% 0.7% 1.8%

Median 1.6x 12.7x 1.6x 11.7x 13.9% 14.1% 1.5% 0.9%

Defense System / Electronics F irms

Harris Corporation 14,880$ 7,098$ 1,562$ 2.1x 9.5x 2.0x 9.8x 22.9% 21.4% 28.6% 17.2%

L-3 Communications Holdings Inc. 14,463 10,331 1,159 1.4x 12.5x 1.4x 12.0x 10.7% 12.0% (4.7%) (3.3%)

Rockwell Collins Inc. 13,294 5,157 1,177 2.6x 11.3x 2.4x 10.2x 22.7% 23.8% 0.7% 4.5%

Orbital ATK, Inc. 6,519 4,628 623 1.4x 10.5x 1.4x 9.4x 11.7% 15.1% 105.6% 1.3%

Cobham plc 5,152 3,056 613 1.7x 8.4x 2.0x 10.3x 20.1% 20.1% 5.9% (13.6%)

FLIR Systems, Inc. 4,105 1,592 349 2.6x 11.7x 2.5x 10.6x 22.9% 23.0% 1.7% 5.6%

Teledyne Technologies Inc. 4,053 2,264 364 1.8x 11.1x 1.8x 11.1x 16.2% 15.7% (4.0%) (2.7%)

Ultra Electronics Holdings plc 2,014 1,071 172 1.9x 11.7x 1.9x 10.6x 16.2% 18.6% (3.7%) (1.8%)

Cubic Corporation 1,352 1,454 82 0.9x 16.5x 0.9x 8.8x 7.3% 9.3% 1.2% 8.5%

Mercury Systems, Inc. 911 249 43 3.7x 21.2x 2.7x 12.5x 16.7% 21.5% 11.1% 26.7%

Kratos Defense & Security Solutions, Inc. 669 653 18 1.0x 37.4x 1.0x 14.5x 3.1% 6.2% (13.9%) (1.3%)

AeroVironment, Inc. 411 264 17 1.6x 24.7x 1.5x 23.7x 6.5% 5.1% 7.9% (4.2%)

Mean 1.9x 15.5x 1.8x 12.0x 14.7% 16.0% 11.4% 3.1%

Median 1.7x 11.7x 1.9x 10.6x 16.2% 17.1% 1.5% 0.0%

Source: Capital IQ

EV: Enterprise Value

LTM: Trailing Twelve Months

NTM: Next Twelve Months

EV as a Mu lt iple of

LTM NTM EBITDA Margin Revenue Growth




Aerospace

Aircraft - OEM

United Technologies Corporation 103,334$ 56,135$ 10,312$ 1.8x 10.0x 1.8x 9.6x 18.3% 18.9% (3.1%) 1.7%

The Boeing Company 84,442 96,597 8,778 0.9x 9.6x 0.9x 8.0x 9.4% 11.1% 5.9% (2.4%)

Airbus Group SE 47,481 73,521 5,931 0.6x 8.0x 0.6x 6.5x 7.8% 9.3% (4.8%) 4.6%

General Dynamics Corporation 44,051 31,409 4,679 1.4x 9.4x 1.4x 9.3x 14.8% 15.0% 2.0% 0.7%

Safran SA 29,844 19,837 4,125 1.5x 7.2x 1.5x 8.1x 20.5% 17.9% 7.9% 0.8%

Textron Inc. 13,102 13,551 1,604 1.0x 8.2x 0.9x 7.7x 11.7% 11.8% (3.3%) 5.5%

Bombardier Inc. 10,261 17,689 632 0.6x 16.2x 0.6x 14.2x 3.4% 4.2% (9.6%) (5.8%)

Dassault Aviation SA 8,471 4,543 620 1.9x 13.7x 2.0x 17.1x 10.2% 10.9% 2.0% (4.7%)

CAE Inc. 3,885 1,938 405 2.0x 9.6x 1.9x 8.0x 19.4% 23.2% (7.7%) 17.7%

Mean 1.3x 10.2x 1.3x 9.8x 12.8% 13.6% (1.2%) 2.0%

Median 1.4x 9.6x 1.4x 8.1x 11.7% 11.8% (3.1%) 0.8%

Aircraft - Suppliers & Aftermarket

TransDigm Group Incorporated 21,778$ 3,000$ 1,327$ 7.3x 16.4x 6.4x 13.9x 44.3% 45.7% 16.1% 17.6%

Thales SA 15,748 15,274 1,697 1.0x 9.3x 1.0x 8.2x 10.3% 11.6% (2.7%) 6.8%

Rockwell Collins Inc. 13,294 5,157 1,177 2.6x 11.3x 2.4x 10.2x 22.7% 23.8% 0.7% 4.5%

HEICO Corporation 4,654 1,286 307 3.6x 15.2x 3.4x 13.7x 23.7% 23.6% 8.2% 14.2%

Hexcel Corp. 4,533 1,887 416 2.4x 10.9x 2.2x 9.6x 22.0% 22.6% 0.3% 7.7%

Curtiss-Wright Corporation 4,381 2,163 395 2.0x 11.1x 2.0x 10.4x 18.7% 18.6% (1.7%) (0.3%)

Triumph Group, Inc. 3,154 3,886 (99) 0.8x N/A 0.9x 5.0x 13.2% 13.6% 4.4% (3.5%)

Moog Inc. 2,718 2,437 329 1.1x 8.3x 1.1x 8.6x 13.1% 12.6% (6.5%) 0.6%

Esterline Technologies Corp. 2,493 1,895 245 1.3x 10.2x 1.3x 8.2x 12.7% 14.6% (6.9%) 4.9%

Ultra Electronics Holdings plc 2,014 1,071 172 1.9x 11.7x 1.9x 10.6x 16.2% 18.6% (3.7%) (1.8%)

Mean 2.4x 11.6x 2.3x 9.9x 19.7% 20.5% 0.8% 5.1%

Median 2.0x 11.1x 2.0x 9.9x 17.4% 18.6% (0.7%) 4.7%

Source: Capital IQ

EV: Enterprise Value

LTM: Trailing Twelve Months

NTM: Next Twelve Months


Recent M&A Transactions – Government Services & Defense


Close Date Name Industry Buyer Buyer Class i f icat ion $M

/LTM

Rev

/LTM

EBITDA

Pending Dell Services (Perot Systems) IT Services NTT DATA, Inc. Public Strategic 3,060.0 N/A N/A

Pending Lockheed Martin Corp. [Information Systems & Global Solutions (IS&GS)] IT Services Leidos Holdings, Inc. Public Strategic 5,000.0 1.0 x N/A

07/05/16 Wyle Laboratories, Inc. C4ISR KBR, Inc. Public Strategic 570.0 0.7 x 8.5 x

07/01/16 Paragon Communications Solutions, Inc. Cyber / Intel Xator Corp. Private Strategic N/A N/A N/A

06/25/16 EOIR Technologies, Inc. Cyber / Intel Arlington Capital Partners P/E Sponsor N/A N/A N/A

06/13/16 Oceans Edge, Inc. [cyber business] Cyber / Intel ManTech International Corp. Public Strategic N/A N/A N/A

05/27/16 Softmart, Inc. IT Services PC Connection, Inc. Public Strategic N/A N/A N/A

05/24/16 Broadspectrum Ltd. Technical Services Ferrovial S.A. Public Strategic 580.0 N/A N/A

05/24/16 Hewlett Packard Enterprise [Enterprise Services] IT Services CSC Public Strategic N/A N/A N/A

05/24/16 Intelligent Decisions, Inc. [counterintelligence and intelligence business units] IT Services Federal Data Systems, Inc. (FedData) Public Strategic N/A N/A N/A

05/23/16 QRC Technologies, Inc. C4ISR DC Capital Partners, LLC P/E Sponsor N/A N/A N/A

05/16/16 Danya International Healthcare IT DLH Holdings Corp. Public Strategic 38.8 N/A 6.0 x

05/06/16 Prime Solutions, LLC Cyber / Intel Altamira Technologies Corp. P/E Backed Strategic N/A N/A N/A

04/22/16 Universal Solutions Initiative, Inc. (USi) IT Services ALATEC, Inc. (Ignite) Private Strategic N/A N/A N/A

04/12/16 Van Dyke Technology Group, Inc., The Cyber / Intel Jacobs Engineering Group, Inc. Public Strategic N/A N/A N/A

03/31/16 Force 3, Inc. Cyber / Intel Sirius Computer Solutions, Inc. P/E Backed N/A N/A N/A

03/30/16 netAura, LLC Cyber / Intel CenturyLink, Inc. Public Strategic N/A N/A N/A

03/14/16 Advanced Scientific Concepts, Inc. (ASC) [ASCar Division] Electronics Continental AG Public Strategic N/A N/A N/A

03/14/16 INDUS Corp. IT Services Tetra Tech, Inc. Public Strategic N/A N/A N/A

03/04/16 Brimtek, Inc.* C4ISR Digital Barriers plc Public Strategic 45.0 1.1 x 12.9 x

03/04/16 NAL Research Corp. Electronics Jordan Company, L.P., The [Drew Marine] P/E Backed Strategic N/A N/A N/A

03/03/16 Safend Ltd. Cyber / Intel SuperCom Ltd. Public Strategic 1.5 0.3 x N/A

03/01/16 Unmanned Safety Institute (USI) C4ISR ARGUS International, Inc. Private Strategic N/A N/A N/A

02/29/16 Purple Secure Systems Ltd. IT Services CACI International, Inc. [CACI Ltd.] Public Strategic N/A N/A N/A

02/29/16 Resilient Systems, Inc. Cyber / Intel IBM Corp. Public Strategic N/A N/A N/A

02/25/16 Miltec Corp. Other General Atomics Corp. Private Strategic 14.6 0.5 x N/A

02/24/16 KEYW Corp. [SETA Business] Technical Services Quantech Services, Inc. Private Strategic 12.0 N/A N/A

02/05/16 Space/Ground System Solutions Inc. (SGSS) Other O'Neil Group Company, LLC [Braxton Science & Technology P/E Backed Strategic N/A N/A N/A

02/04/16 Obsidian Analysis, Inc. Technical Services Cadmus Group, Inc., The Private Strategic N/A N/A N/A

02/02/16 Invotas International Corp. Cyber / Intel FireEye, Inc. Public Strategic N/A N/A N/A

02/01/16 L-3 Communications (NSS) IT Services CACI International Inc. Public Strategic 550.0 0.5 x N/A

01/29/16 New World Solutions, Inc. Technical Services SOS International, LLC (SOSi) Private Strategic N/A N/A N/A

01/29/16 Wavefront Technologies, Inc. Cyber / Intel Ball Corp. Public Strategic N/A N/A N/A

01/19/16 PAE Other Platinum Equity Holdings (PEH) P/E Sponsor N/A N/A N/A

01/15/16 Clearsoft, Inc. IT Services Battle Resource Management, Inc. (BRMi) Private Strategic N/A N/A N/A

01/15/16 Cobham plc [Surveillance Business] C4ISR Marlin Equity Partners P/E Sponsor 10.0 N/A N/A

01/14/16 iSIGHT Partners, Inc. Cyber / Intel FireEye, Inc. Public Strategic 200.0 N/A N/A

01/14/16 Ness Technologies, Inc. [Ness TSG IT Advanced Systems Ltd.] IT Services Israel Aerospace Industries (IAI), Formula Systems (1985) Ltd. Public Strategic 50.0 N/A N/A

01/13/16 Social Intelligence Corp. [government solutions business] Cloud / Data Analytics Altamont Capital Partners [OMNIPLEX World Services Corp.] P/E Backed Strategic N/A N/A N/A

01/13/16 Tandel Systems, Inc. Technical Services AE Industrial Partners, LLC [Belcan, LLC] P/E Backed Strategic N/A N/A N/A

01/12/16 Marshall Communications Corp. Other Mission Solutions Group (MSG), Inc. Private Strategic N/A N/A N/A

01/12/16 Tetra Concepts, LLC Cloud / Data Analytics CM Equity Partners, L.P. (CMEP) [Preferred Systems Solutions, P/E Backed Strategic N/A N/A N/A

01/06/16 Talentscale, LLC Other SCST, Inc. Private Strategic N/A N/A N/A

12/31/15 Applied Measurement Professionals, Inc. (AMP) Technical Services PSI Services, LLC Private Strategic N/A N/A N/A

12/23/15 Ability Computers & Software Industries Ltd. Other Cambridge Capital Acquisition Corporation Public Strategic 192.0 3.9 x 9.6 x

12/21/15 Airbus Group SE [commercial satellite business] Other Apax Partners S.A. P/E Sponsor N/A N/A N/A

12/21/15 GATR Technologies, Inc. C4ISR Cubic Corp. Public Strategic 232.5 N/A N/A

12/21/15 TeraLogics, LLC IT Services Cubic Corp. Public Strategic 39.0 N/A N/A

12/18/15 Alta IT Services LLC IT Services System One Holdings, LLC Private Strategic N/A N/A N/A

12/18/15 TeraLogics, LLC C4ISR Cubic Corp. Public Strategic 39.0 N/A N/A

12/16/15 Lewis Innovative Technologies, Inc. Cyber / Intel Mercury Systems, Inc. Public Strategic N/A N/A N/A

12/11/15 Cyveillance, Inc. Cyber / Intel LookingGlass Cyber Solutions, Inc. P/E Backed Strategic N/A N/A N/A

11/30/15 SRA International IT Services Computer Sciences Government Services Inc. Public Strategic N/A N/A N/A

Target Information Buyer Information EV Information

*Brimtek EV includes $20 million earnout based on 2017 performance


Recent M&A Transactions – Government Services & Defense



/LTM

Rev

/LTM

EBITDA

11/23/15 STG. Inc Cyber / Intel Global Defense & National Security Systems, Inc. Public Strategic 165.0 0.8 x 9.0 x

11/19/15 ATC Associates, Inc. Other Bernhard Capital Partners P/E Sponsor 64.0 N/A N/A

11/16/15 Data Networks Corp. IT Services ASRC Federal Holding Co. Private Strategic N/A N/A N/A

11/03/15 GSM Consulting, Inc. IT Services Preferred Systems Solutions (PSS) (CM Equity) P/E Backed Strategic N/A N/A N/A

11/03/15 MAR, Inc. Cyber / Intel Oasis Systems LLC P/E Backed Strategic N/A N/A N/A

11/02/15 SPARC, LLC IT Services Booz Allen Hamilton Public Strategic 50.0 N/A N/A

11/02/15 The Protective Group, Inc. Other Point Blank Enterprises, Inc. (Sun Capital Partners) P/E Backed Strategic N/A N/A N/A

10/31/15 Novetta Solutions, LLC Cyber / Intel The Carlyle Group LP P/E Sponsor N/A N/A N/A

10/30/15 PROSOFT (Assets of the Alliant Business Unit) IT Services Tribalco, LLC Private Strategic N/A N/A N/A

10/26/15 Pomeroy IT Solutions, Inc. (Platinum Equity) IT Services Clearlake Capital Group, L.P. P/E Sponsor N/A N/A N/A

10/05/15 Foreground Security Cyber / Intel Raytheon Co. Public Strategic N/A N/A N/A

09/30/15 Johnson Controls Security Systems, LLC Other Versar, Inc. Public Strategic 20.0 0.6 x N/A

09/15/15 CRGT, Inc. IT Services Salient Federal Solutions P/E Backed Strategic N/A N/A N/A

08/31/15 Information Management Consultants, Inc. (IMC) - Health & Public Sector Group Healthcare IT CALIBRE Systems, Inc. Private Strategic N/A N/A N/A

08/24/15 Kratos (Electronic Products Division) C4ISR Ultra Electronics Public Strategic 265.0 1.2 x 12.0 x

08/21/15 Alion Science and Technology (AST) Other Veritas Capital P/E Sponsor N/A N/A N/A

08/20/15 BOSH Global Services Other Momentum Aerospace Group (MAG) P/E Backed Strategic N/A N/A N/A

08/17/15 EM Business Holdings, Inc. IT Services AMERICAN SYSTEMS Corp Private Strategic N/A N/A N/A

07/31/15 Eagleview Technologies, Inc. Cloud / Data Analytics Vista Equity Partners P/E Sponsor N/A N/A N/A

07/15/15 ManTech Cyber Solutions International (MSCI) Cyber / Intel CounterTack, Inc. P/E Backed Strategic N/A N/A N/A

07/01/15 Development & Training Services, Inc. (dTS) Other The Palladium Group P/E Sponsor N/A N/A N/A

06/30/15 EMRISE Electronics Ltd. Other Behrman Capital [Data Device Corp.] P/E Backed Strategic 22.0 N/A N/A

06/30/15 Information Technology Engineering Corporation IT Services Fahrenheit IT, Inc. P/E Backed Strategic N/A N/A N/A

06/30/15 Optimum Technology, Inc. IT Services Appriss Inc. Private Strategic N/A N/A N/A

06/19/15 Knowledge Consulting Group, Inc. Cyber / Intel ManTech International Corporation Public Strategic N/A N/A N/A

06/15/15 Emergency Communications Network, LLC Other Veritas Capital Capital Fund L.P. P/E Sponsor N/A N/A N/A

06/09/15 Eclipse Electronic Systems C4ISR BAE Systems Public Strategic 28.0 N/A N/A

05/29/15 Exelis Inc. C4ISR Harris Corporation Public Strategic 4,750.0 1.4 x 9.2 x


Cloud / Data

Analytics

24%

Cyber / Intel

18%

Other

26%

IT Services

13%

C4ISR

8%

Healthcare IT

10%

Technical

Services

1%

Target Industry

Public

Strategic

45%

Private

Strategic

22%

P/E Backed

Strategic

18%

P/E Sponsor

15%

Buyer Classification


Recent M&A Transactions – Aerospace



/LTM

Rev

/LTM

EBITDA

Pending Fly By Wire Systems France S.A.S. Electronics LORD Corp. Private Strategic N/A N/A N/A

06/17/16 Adetel Group [51%] Electronics Centum Electronics Ltd Public Strategic N/A N/A N/A

07/06/16 PCB Group, Inc. Electronics MTS Systems Corp. Public Strategic 580.0 N/A N/A

06/16/16 Precision Made Products, LLC Structures & Components O2 Investment Partners [Alpha Sintered Metals] P/E Sponsor N/A N/A N/A

06/10/16 Micro-Coax, Inc. Electronics Carlisle Companies, Inc. Public Strategic N/A N/A N/A

06/21/16 J&M Machine, LLC Structures & Components Liberty Hall Capital Partners [Accurus Aerospace Corp.] P/E Backed Strategic N/A N/A N/A

06/01/16 Warmelin Precision Products Structures & Components Nautic Partners [Aerostar Aerospace Manufacturing, LLC] P/E Backed Strategic N/A N/A N/A

06/01/16 Mipnet Industries / JTT Composites Structures & Components Compagnie de Saint-Gobain Public Strategic N/A N/A N/A

05/24/16 ILC Holdings, Inc. [Data Device Corp.] Electronics TransDigm Group, Inc. Public Strategic 1,000.0 5.0 x N/A

06/20/16 Bombardier, Inc. [Amphibious Aircraft business] Structures & Components Viking Air Ltd Public Strategic N/A N/A N/A

05/19/16 AC&A, LLC Structures & Components AE Industrial Partners, LLC P/E Sponsor N/A N/A N/A

05/31/16 Kreisler Manufacturing Corp. Structures & Components Arlington Capital Partners [United Flexible] P/E Backed Strategic 33.7 N/A N/A

05/02/16 IMSAR, LLC [radar product line] Other Fortem Technologies Private Strategic N/A N/A N/A

05/31/16 Oxford Performance Materials, Inc. (OPM) Structures & Components Hexcel Corp. Public Strategic N/A N/A N/A

05/04/16 Sigma Precision Components UK Ltd Structures & Components Silverfleet Capital Partners LLP P/E Sponsor 94.0 N/A N/A

02/26/16 Harris Corp. [Aerostructures] Structures & Components Albany International Corp. Public Strategic 210.0 2.7 x 15.0 x

04/04/16 Prime Aviation Services S.p.A. [60%] MRO BBA Aviation plc Public Strategic N/A N/A N/A

04/20/16 Innovative Control Systems (ICS) Electronics Reiser Simulation and Training GmbH (RST) Private Strategic N/A N/A N/A

04/05/16 ESNA, Elastic Stop Nut Corporation of America Structures & Components Rosewood Private Investment [Novaria Group} P/E Backed Strategic N/A N/A N/A

04/05/16 Sky-Tec Partners, Ltd. [product line] Other Tailwind Technologies, Inc. [Hartzell Engine Technologies, LLC] P/E Backed Strategic N/A N/A N/A

04/04/16 Centrax Turbine Components Other Blackstone Group, L.P., The [MB Aerospace Holdings Ltd] P/E Sponsor N/A N/A N/A

03/30/16 Landmark Aviation [six FBOs] MRO KSL Capital Partners, LLC P/E Sponsor 190.0 N/A 11.8 x

03/23/16 Forming Technology, Inc. (FTI) Structures & Components Hexagon AB Public Strategic N/A N/A N/A

03/23/16 Ferco Aerospace Structures & Components Rosewood Private Investments / Tailwind Advisors [Novaria Group] P/E Backed Strategic N/A N/A N/A

03/21/16 Jackson Flexible Products, Inc. Structures & Components Tillerman & Co. P/E Sponsor N/A N/A N/A

03/18/16 Airbus Group SE [Defense Electronics] Other KKR & Co. P/E Sponsor 1,200.0 1.1 x N/A

03/15/16 Aurora Flight Sciences Corp. [equity stake] Manufacturer Enlightenment Capital P/E Sponsor N/A N/A N/A

03/08/16 Airbus DS SatCom Other Satcom Direct Communications, Inc. Private Strategic N/A N/A N/A

03/01/16 Unmanned Safety Institute (USI) Other ARGUS International, Inc. Private Strategic N/A N/A N/A

02/26/16 Harris Corp. [Aerostructures] Structures & Components Albany International Corp. Public Strategic 210.0 2.7 x 15.0 x

02/23/16 Mettis Aerospace Ltd Structures & Components Stirling Square Capital Partners P/E Sponsor N/A N/A N/A

02/23/16 TeleCommunication Systems, Inc. Other Comtech Telecommunications Corp. Public Strategic 430.8 1.2 x 10.7 x

02/22/16 New England Airfoil Products, Inc. Other Pietro Rosa TBM S.R.L. Private Strategic N/A N/A N/A

02/03/16 AIM Aerospace, Inc. Structures & Components Liberty Hall Capital Partners P/E Sponsor 220.0 N/A N/A

01/29/16 Precision Castparts Corp. Structures & Components Berkshire Hathaway, Inc. P/E Sponsor 37,200.0 3.7 x 13.1 x

01/27/16 General Ecology, Inc. Other JLL Partners [Loar Group, Inc.] P/E Backed Strategic N/A N/A N/A

01/19/16 PAE MRO Platinum Equity Holdings (PEH) P/E Sponsor N/A N/A N/A

01/07/16 Silverado Cable Co. Structures & Components Phoenix Logistics, Inc. Private Strategic N/A N/A N/A

01/06/16 Able Aerospace, Inc., Able Engineering and Component Services, Inc. MRO Textron, Inc. Public Strategic N/A N/A N/A

01/05/16 Gemcor II, LLC Structures & Components American Industrial Partners [AIP Aerospace] P/E Backed Strategic 14.0 N/A N/A

01/05/16 All Metals Processing of Orange County, Inc. Structures & Components Watson Family Investments, LLC P/E Sponsor N/A N/A N/A

01/04/16 Ascending Technologies GmbH Other Intel Corp. P/E Sponsor N/A N/A N/A

12/31/15 Pipavav Defence and Offshore Engineering Ltd MRO Reliance Defence Systems Private Limited Public Strategic N/A N/A N/A

12/21/15 Robertson Fuel Systems, LLC Other HEICO Corp. Public Strategic 255.0 N/A N/A

12/16/15 MB Aerospace Holdings Ltd. Structures & Components Blackstone Group, L.P. P/E Sponsor N/A N/A N/A

12/07/15 Abaco Systems, Inc [GE Intelligent Platforms Embedded Systems, Inc.] Electronics Veritas Capital Fund L.P. P/E Sponsor N/A N/A N/A

12/02/15 N2 Imaging Systems, LLC Other UTC Aerospace Systems Public Strategic N/A N/A N/A

11/30/15 GRW Bearing GmbH Structures & Components Kaman Corp. Public Strategic 142.8 2.8 x N/A

11/25/15 Cobham plc [Advanced Composites Business] Structures & Components Meggitt plc Public Strategic 200.0 2.5 x 10.0 x

11/19/15 Breeze-Eastern Corp. Structures & Components TransDigm Group, Inc. Public Strategic 206.0 2.3 x N/A

11/13/15 Secure Communication Systems, Inc. Electronics Benchmark Electronics, Inc. Public Strategic 230.0 N/A N/A

11/05/15 Tri-State Care Flight, LLC Other Air Methods Corp. Public Strategic 222.5 2.7 x N/A



Recent M&A Transactions – Aerospace


Structures & Components

46%

MRO12%

Electronics14%

Engineering1%

Other27%

Target Industry

Public Strategic

51%

Private Strategic

13%

P/E Backed Strategic

11%

P/E Sponsor25%

Buyer Classification


/LTM

Rev

/LTM

EBITDA

10/28/15 OM Group, Inc. [businesses] Structures & Components Apollo Global Management, LLC P/E Sponsor N/A N/A N/A

10/06/15 The Byran Company, Inc. Structures & Components M Line Holdings, Inc. Public Strategic 5.1 N/A N/A

10/01/15 Bombardier, Inc. [Military Aviation Training Unit] Other CAE, Inc. Public Strategic 15.9 N/A N/A

09/28/15 Corvid Technologies Engineering Chickasaw Nation Industries, Inc. (CNI) Private Strategic N/A N/A N/A

09/23/15 Landmark Aviation MRO BBA Aviation plc Public Strategic 2,065.0 N/A 12.8 x

09/17/15 Aviaso Other Honeywell, Inc. Public Strategic N/A N/A N/A

09/08/15 Compac Development Corporation Electronics Air Industries Group, Inc. Public Strategic 1.2 N/A N/A

08/28/15 Electroservices Enterprises Ltd. Electronics Keysight Technologies, Inc. Public Strategic N/A N/A N/A

08/24/15 Astroseal Products Manufacturing Corp. Structures & Components HEICO Corp. Public Strategic N/A N/A N/A

08/19/15 PneuDraulics, Inc. Structures & Components TransDigm Group, Inc. Public Strategic 325.0 N/A N/A

08/19/15 Baines Simmons Americas, LLC Other Air Partner, Inc. Public Strategic 9.4 N/A N/A

08/19/15 Aerospace & Commercial Technologies, Inc. (ACT) Structures & Components HEICO Corp. Public Strategic N/A N/A N/A

08/14/15 Tempus Applied Solutions, LLC Other Chart Acquisition Corp. Public Strategic 100.0 N/A N/A

07/23/15 RTI International Metals, Inc. Other Alcoa, Inc. Public Strategic 1,500.0 1.9 x 13.0 x

07/20/15 HITCO Carbon Composites, Inc. [Aerostructures division] Structures & Components Avcorp Industries, Inc. Public Strategic N/A N/A N/A

07/08/15 StandardAero MRO Veritas Capital Fund L.P. P/E Sponsor N/A N/A N/A

07/02/15 Educational Services, Inc. Other IMPAQ International, LLC Private Strategic N/A N/A N/A

07/01/15 Cuming Microwave Corp. Structures & Components PPG Industries, Inc. Public Strategic N/A N/A N/A

07/01/15 Safe Air Limited MRO Airbus Group Australia Pacific Limited Public Strategic N/A N/A N/A

06/29/15 Samsung Techwin Co. Other Hanwha Group Public Strategic 1,720.0 N/A N/A

06/22/15 Discovery Air Technical Services MRO Premier Aviation Overhaul Centre, Inc. P/E Backed Strategic N/A N/A N/A

06/22/15 EMC Aerospace, Inc. MRO Velocity Aerospace Group, Inc. P/E Backed Strategic N/A N/A N/A

06/09/15 Sky Manufacturing, Inc. Structures & Components Novaria Group P/E Backed Strategic N/A N/A N/A

06/08/15 Rel-Tech Electronics, Inc. Other RF Industries, Ltd. Public Strategic 3.1 0.4 x N/A

05/28/15 Shimtech Industries Limited Structures & Components Auctus Industries Limited P/E Backed Strategic 215.4 3.0 x N/A

05/27/15 CTC Aviation Group Ltd. Other L-3 Communications Corp. [L-3 Communications Precision Public Strategic 220.0 2.6 x N/A

05/22/15 CyPhy Works, Inc. Other Draper Nexus P/E Sponsor N/A N/A N/A

05/18/15 Euravia Engineering & Supply Co. Ltd. MRO Magellan Aerospace Corp. Public Strategic 56.5 2.2 x N/A

05/14/15 Pexco LLC Structures & Components TransDigm Group, Inc. Public Strategic 496.0 N/A N/A

05/12/15 Precision Aero Corp. Structures & Components Riverside Company, The [H-D Advanced Manufacturing Co.] P/E Backed Strategic N/A N/A N/A



Representative ACP Transactions


WHO IS ARONSON CAPITAL PARTNERS?

Aronson Capital Partners is a leading financial advisor to government services and technology firms. We exercise our special

domain expertise in the Defense, Intelligence, and Federal Civilian markets to achieve exceptional results for our clients. In

addition to completing more than 100 transactions in the federal sector, our principals have decades of executive level, hands-on

experience in the industry – a key differentiator that leads to success.

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Mergers & Acquisitions

• Sell & Buy-Side M&A

• Private Equity Investments

• Management Buyouts

• Divestitures

• Asset Sales

Corporate Finance

• Recapitalizations & Restructurings

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Financial Advisory

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Q2 2016 Market Update - Aronson LLC · contracts awarded in the C4ISR market during the second...

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