Ultra acquires specialist sonar provider
Ultra announces that it has acquired 3 Phoenix Inc ("3Pi" or "the company") headquartered in Chantilly, Virginia, for an initial cash consideration of $70m. Additional payments of up to $17m will be due subject to earnings growth over the next three years. Ultra has acquired 3Pi from its management team which includes the five founders. All of the management team will stay with the business.
3Pi, which has 182 employees, is a leading supplier of specialist sonar, radar, intelligence, surveillance and reconnaissance products and solutions. The company has a 10 year track record of delivering critical real-time sensor and processing systems, primarily to the US Navy, but also to commercial customers. 3Pi's reputation has been built on creating innovative system engineering solutions and the company has established positions on a number of major naval programmes.
3Pi is a bolt-on acquisition to Ultra's existing Tactical & Sonar Systems Division, with which there are a significant number of internal and external synergies. Integration will occur during 2014 to exploit fully and realise the benefits of these synergies and it is expected that the full accretion of earnings will occur during 2015. The acquisition of 3Pi will be financed using Ultra's existing facilities.
Rakesh Sharma, Chief Executive of Ultra, commented:
"3Pi provides important complementary technologies and products to advance Ultra's strategy of targeting areas of preferential customer spending in the naval sensors, security and intelligence domains. 3Pi is a technology-rich company with an established position in the US market place. Its sonar, anti-submarine warfare, mine detection and electronic warfare capabilities have strong market-facing synergies with Ultra's Avalon, Command & Control, Maritime Systems, Ocean Systems, Sonar Systems and USSI businesses."