San Diego Business Journal

Cubic Buys Defense Business

Tuesday, December 18, 2012

Cubic Corp., the San Diego defense contractor and provider of mass transit fare collection systems, said it acquired the operating assets of NEK Special Programs Group, a subsidiary of NEK Advanced Securities Group Inc. for $52 million in cash.

According to Cubic, NEK Special Programs is a leading provider of advanced and specialized courses for the U.S. Special Operations Command.

“By selling our NEK Special Programs Group subsidiary to Cubic, NEK has found a great company to carry on our history of providing our country’s elite service personnel with exceptional training and support,” said Tony Porterfield, NEK’s chief executive, who is serving as a consultant to Cubic along with Bruce Parkman.

Jay Thomas, Cubic’s senior vice president of finance and corporate development, said the NEK acquisition will help solidify and expand the company’s specialized mission critical capabilities focused on the national security market.

As part of the acquisition, some 200 operational and technical experts from NEK’s special operations forces training business become Cubic employees.

The unit will be operated under Cubic’s Mission Support Services, which is headed by President Jim Balentine. That division employs about 4,400 workers worldwide. Its customers include the U.S. Department of Defense, all U.S. armed forces, the U.S. Department of Homeland Security and selected allied nations.

— SDBJ Staff Report