Titan to Buy Jaycor Inc. for $95M
Technology: Sensor and Communications Firm to Be Bought in Stock Trade
BY BRAD GRAVES
Staff Writer
San Diego-based Titan Corp. plans to absorb local defense contractor Jaycor, Inc. this year in a $95 million deal.
Titan announced Jan. 22 it had signed a definitive agreement to acquire Jaycor for approximately $95 million in Titan stock.
Jaycor produces communications products and a variety of sensors. It also offers information technology services. Clients include the Department of Defense and the Department of Energy.
The transaction is expected to close in the first quarter of 2002.
Titan announced the transaction should reduce Titan’s net debt by approximately $50 million, add approximately $45 million to $50 million to its 2002 revenues, and contribute to its 2002 earnings.
Gene Ray, Titan’s chairman, president and CEO, praised Jaycor’s “rich technology portfolio” in a prepared statement.
Jaycor’s technologies, he added, might have applications in the commercial world.
Titan has 10,000 employees and yearly sales of $1.3 billion. It trades as TTN on the New York Stock Exchange.
Jaycor, Inc. has 110 employees in San Diego and 375 employees in the United States, according to 2002 San Diego County Technology Directory, published by Alexander X. Its annual sales were not immediately available.
Jaycor, Inc. was founded in 1975 and has been successful in putting defense technology to use in the civilian world.
The company spun off JNI Corp. , which makes hardware and software for storage area networks , in 1999. JNI’s $93.1 million stock offering was the second largest IPO for a San Diego company in 1999. The company trades on the Nasdaq under the symbol JNIC.
More recently it spun off privately held Jaycor Tactical Systems. The company makes “less lethal” weapons systems for law enforcement. Its signature PepperBall product delivers incapacitating doses of pepper spray in pellets similar to paintballs.
Jaycor, Inc. , the parent company in the spinoffs , has kept its business in respiration sensors, acoustic imaging sensors, visibility sensors, radar systems, and radiation hardened and ruggedized military devices. It also provides network security products.
