TeleCommunication Systems, Inc. [TSYS] recently said it has agreed to acquire Trident Space & Defense, LLC, a provider of engineering and electronics solutions for the space and defense markets, adding to its capabilities in end-to-end secure wireless communication solutions.
TCS said it is paying cash and three million shares of its common stock for Trident, which is currently owned by the private equity firm Admiralty Partners.
TCS provides secure mobile communications technology, including infrastructure for enhanced 9-1-1 solutions, text messaging, commercial location and deployable wireless communications. The company had over $220 million in sales last year operating in two segments, Commercial and Government, with more than half of the revenue on the Government side.
Trident operates in three groups: Advanced Products, which provides advanced semiconductor packaging solutions for custom multichip modules; Electronic Components, which supplies electronic components and design support services to the space industry; and Ground Systems, which provides turnkey full-tracking ground stations to the commercial space industry.
“Trident’s position as a key vendor to foreign governments and commercial space customers substantially broadens our global footprint,” Maurice Tose, TCS chairman and CEO, said in a statement. “As part of this transaction, we will welcome the founder, chairman and CEO of Admiralty Partners, Jon Kutler, to our board of directors. Mr. Kutler’s experience in the fields of aerospace and defense will help us with strategic initiatives to further enhance the company’s position as a global wireless solutions provider across a range of markets.”
Trident, which is based in California, also brings with it an industry standard certified engineering design and packaging center for TCS’ SwiftLink line of satellite-based communications systems.
The deal is expected to close in the first quarter of 2011. Trident is expected to have more than $40 million in sales next year with earnings before interest, taxes, depreciation and amortization margin about 15 percent. TCS expects the deal to be accretive to earnings.