Cubic Corp. said March 14 that it acquired electronics maker Nuvotronics of Durham, North Carolina, for $64 million cash.
The sellers have the opportunity to earn up to $8 million more if Nuvotronics performs well in the future.
Nuvotronics produces microfabricated radio frequency products. It primarily serves the military satellite and electronic warfare markets. Its patented PolyStrata technology was developed under DARPA, the Defense Advanced Research Projects Agency. The technology also has commercial applications, in 5G wireless communications as well as automotive.
Nuvotronics has more than 120 patents and patent applications.
Cubic (NYSE: CUB) used its existing credit facility to finance the acquisition. Cubic said it anticipates the transaction to be accretive to cash earnings per share by the second full year of operations.
“Nuvotronics’ high-performance, reduced size, weight and power (SWaP) capability further strengthens Cubic’s offering in our high-growth, high-margin Cubic Mission Solutions business,” said Brad Feldmann, Cubic’s CEO, in a prepared statement.
Cubic splits its business between defense contracting (including training) and providing government transportation departments with equipment and services.