Cubic [CUB] on Tuesday said it has acquired DTECH LABS, Inc., a provider of modular networking and baseband communications equipment, for $114.5 million.
The deal includes $15 million of contingent consideration. Cubic expects the deal to be accretive to earnings beginning in fiscal year 2016.
“DTECH is the first step in our near-term strategy to build a niche $100 million to $200 million C4ISR business generating mid-teen” margins, Bradley Feldmann, Cubic’s president and CEO, said in a statement. “DTECH represents a value investment and adds networking capability to our secure communications base.”
DTECH, which is based in Northern Virginia, makes ruggedized tactical and strategic networking products such as routers for portable, man-packable, vehicular and airborne applications. The company’s customers include Special Operations Command, the Marine Corps, and other government and commercial customers.