Cubic Corp. said on May 31 that it closed its sale of its Cubic Global Defense Services unit for approximately $135 million cash. The buyer is Valiant Integrated Services. An additional $3 million of contingent consideration is tied to the business winning certain contracts in the next 12 to 24 months.
“The close of our CGD Services business divestiture to Valiant is an important step for Cubic as we work to ensure we are best positioned to drive sustainable long-term value for our customers, employees and shareholders,” said Bradley H. Feldmann, chairman, president and CEO of Cubic (NYSE: CUB) in a statement released June 1. “As we continue to reshape and strengthen our portfolio of businesses, we will focus on building market-leading positions where we can leverage our technological and thought leadership to provide innovation-driven solutions to our customers’ advantage.”
Cubic reported $1.49 billion in sales in fiscal 2017, up from $1.46 billion the prior year. The Kearny Mesa-based corporation splits its business between defense contracting and technology for public transit agencies and highway departments.
The sale does not mean Cubic is out of the defense business. It retains its defense technology arm, which includes several recently acquired businesses for military communications.