GPS World

Tag: Jeff Rittichier

  • Emcore to acquire the L3Harris Space and Navigation business

    Emcore to acquire the L3Harris Space and Navigation business

    Emcore logoEmcore Corporation has entered into a definitive agreement to acquire the assets and liabilities of the L3Harris Space and Navigation business for approximately $5 million in an all-cash transaction.

    “L3Harris Space and Navigation designs and builds some of the most accurate navigation products in the world,” said Jeff Rittichier, president and CEO of Emcore. “This acquisition expands our fiber-optic gyroscope (FOG) product portfolio into the strategic grade and space-qualified markets. We will also gain a technical team with a sterling track record of development and production of high-performance FOGs, ring laser gyros (RLGs) and reaction wheels.

    “This acquisition further solidifies Emcore’s position as one of the largest independent inertial navigation providers in the industry. This is an excellent fit strategically for Emcore, bringing space and navigation’s strong brand, inertial technology and important program wins. It also expands Emcore’s market reach into launch vehicle and space satellite markets, both of which are seeing significant growth,” Rittichier added.

    “The L3Harris Space and Navigation team will provide Emcore with the capability to accelerate expansion into a true navigation-grade FOG business with superior performance and accuracy compared to competitors,” said Albert Lu, senior vice president and general manager, Aerospace and Defense for Emcore. “Combining this business into Emcore will allow us to provide customers with an expanded product suite that serves a broader range of requirements across both the tactical and navigation grade segments of the market.”

    Highlights of the transaction are as follows:

    • Expands Emcore’s inertial navigation product portfolio and addressable market, accelerating growth and contributing additional revenue.
    • Includes master supply agreements (MSAs) for the BoRG (Booster Rate Gyro) and TAIMU (Tri-Axial Inertial Measurement Unit) launch vehicle programs and creates partnership opportunities with L3Harris to expand mutual business.
    • Adds Emcore as a preferred supplier to L3Harris divisions for future business opportunities.
    • Adds a complete set of capabilities to design and test for space applications:
      • shock, vibration and thermal-shock measurement equipment
      • x-ray capability and vacuum chambers.
    • Includes a large number of rate tables that can serve multiple product applications.
    • Is expected to create material operating synergies in engineering, manufacturing and sales.
    • Is expected to be non-GAAP EPS accretive.

    Through the transaction, Emcore will acquire all the intellectual property and outstanding assets and liabilities of the L3Harris Space and Navigation business, including the 110,000-square-foot leased production facility in Budd Lake, New Jersey.

    The consummation of the transaction is subject to customary closing conditions and is currently expected to close in the quarter ending June 30, 2022.

  • Emcore acquires Systron Donner, increasing defense role

    Emcore acquires Systron Donner, increasing defense role

    Logos: Emcore & Systron Donner

    Emcore Corporation, a provider of advanced mixed-signal optics products that provide the foundation for defense systems, has acquired Systron Donner Inertial, Inc. (SDI) from Resilience Capital Partners for approximately $25.8 million. Consideration will be in the form of $22.8 million in cash plus 810,698 shares of Emcore common stock.

    Highlights of the transaction are as follows:

    • Expected to increase the navigation systems products to over one third of Emcore’s total revenue; making the aerospace and defense market Emcore’s largest revenue source.
    • Expands Emcore’s  navigation systems product portfolio and accelerates growth through the contribution of substantial additional revenue, which in the unaudited books and records of SDI, totaled approximately $28 million for the 12 months ended March 31, 2019.
    • Adds additional Raytheon, Lockheed Martin and Boeing 777X programs to Emcore’s existing navigation systems portfolio.
    • Expected to create material operating synergies in manufacturing, sales and engineering.
    • Expected to be non-GAAP EPS accretive by the end of calendar 2019

    Emcore intends to add SDI’s business to its current navigation product line and support these products from facilities in Concord, California. Through the transaction, Emcore has acquired all of the outstanding assets and liabilities of SDI, including SDI’s 100,000 square foot production facility in Concord.

    “This acquisition delivers immediate scale to our growing navigation systems product line and positions Emcore as one of the largest independent inertial navigation providers in the industry,” said Jeff Rittichier, president and CEO of Emcore. “Merging Emcore’s existing navigation systems product line with SDI’s strong brand, technology and backlog, and program wins, instantly creates a stable, growing, and technically advanced business well-positioned to disrupt market norms.

    “SDI provides Emcore with a scalable, chip-based platform for higher volume gyro applications, while delivering superior performance compared to its competitors. Combining this business into Emcore will allow us to provide customers with a full product suite that serves a broad range of requirements across both the tactical and navigation grade segments of the market,” concluded Rittichier.

    Emcore also announced the appointment of Bruce Grooms to its board of directors. Grooms has extensive senior management and executive experience in both the private sector and the U.S. Navy. From 2015 until June 1, 2019, Grooms served as Raytheon’s vice president of U.S. Business Development, Navy and Marine Corps Programs, where he was responsible for identifying and pursuing U.S. Navy and Marine Corps business growth opportunities for Raytheon and was one of its primary contacts with Navy customers, pursuing opportunities in the evolving cyber area, undersea growth and next-generation strike weapons.