Posted on: 01 October 2013 by Mark Howells
Astronics Corporation (Astronics) has announced the acquisition of certain assets and liabilities from antenna systems supplier, AeroSat Corporation (AeroSat).
The deal is claimed to include $12 million in cash, plus the potential for an earn out which is expected to be between $5 and $20 million.
AeroSat designs and manufactures fuselage and tail-mounted antenna systems for commercial transport, business jet, and military aircraft customers around the world. Its antenna systems are typically used to enable satellite and ground-based communication to aircraft, commonly for broadband and TV applications. AeroSat is currently involved in a range of FAA certification efforts with Gogo Inc. for Ku band send/receive satellite antennas intended for Gogo's international airline customers.
"We are pleased to have AeroSat as part of Astronics,” commented Peter J. Gundermann, CEO of Astronics. “Now, with AeroSat, we also provide antenna systems that enable broadband connectivity. We believe AeroSat's capabilities fit in well with our vision for the future."
AeroSat, which is based in Nashua, NH and currently has approximately 40 employees, is expected to have sales of approximately $12 million to $14 million in calendar year 2013. AeroSat's President, Dennis Ferguson, will continue to run the AeroSat operations.
Earnout payments will be due if AeroSat's 2014 revenue exceeds $30 million and if 2015 revenue exceeds $40 million. Earnout payments increase with revenue and are capped at $53 million. Astronics expects 2014 revenue from AeroSat will total $20 to $40 million; this would suggest a range from no earnout up to $3 million in earnout awarded.