|Deal Sub-Type:||Majority Acquisition|
|Target:||Sotera Defense Solutions, Inc.|
|Vendor:||Ares Management, L.P.|
|Deal Country:||United States of America|
|Expected Closing Date:||30-Jun-2017|
|Deal Value (USD m):||235.00|
Deal in Brief
The KeyW Corporation, a provider of cyber superiority, cyber security and geospatial intelligence solutions, has signed a definitive agreement to acquire Sotera Defense Solutions, Inc. (formerly Global Defense Technology & Systems, Inc.), a security technology company, in an all-cash transaction valued at approximately USD235 million. Both the companies are based in the US.
Following the transaction, Sotera will become a wholly-owned subsidiary of KeyW. KeyW and Sotera will offer a portfolio of solutions, including cyber, geospatial, cloud and data analytics, engineering, analysis and operations, and machine learning; and the combined company will have its headquarter in Hanover, US.
Sotera is owned by the funds managed by Ares Management, L.P., a US-based asset management firm.
KeyW intends to fund the transaction with proceeds from a newly secured credit facility arranged by RBC Capital Markets, LLC and cash on hand.
The transaction is expected to be immediately accretive to 2017 adjusted earnings per share (EPS) and accretive to 2018 generally accepted accounting principles (GAAP) EPS.
RBC Capital Markets, LLC and Guggenheim Securities, LLC are acting as financial advisors, while Morrison & Foerster LLP and Holland & Knight LLP are acting as legal advisors to KeyW.
Macquarie Capital Group Limited and Sagent Advisors, Inc. are acting as financial advisors, while Proskauer Rose LLP is acting as legal advisor to Sotera.
The transaction is expected to close in the second quarter of 2017.
The transaction will enable KeyW to increase its growth plans.
The transaction will provide new and enhanced access to agencies within the KeyW’s existing IC portfolio, adds significant scale, creating unique, IC-focused provider, and will adds new and complementary capabilities for IC customers.
It will also enable KeyW and Sotera to expand their footprints among intelligence community (IC) customers and leverage capabilities to benefit existing and new customers, as well as add scale.
Company Name: KEYW Corporation
Address: Suite A, 1334 Ashton Road, Hanover
Country: United States of America