RONKONKOMA, N.Y., 12 Jan. 2010. Electronic components supplier API Technologies Corp. in Ronkonkoma, N.Y., is looking to boost the company's expertise in military contracting and defense electronics manufacturing with its acquisition of electronics contract manufacturing company SenDEC Corp. in Fairport, N.Y. SenDEC had $90 million in revenues and $3.5 million in profits in 2010.
API signed a definitive merger agreement with Vintage Capital Management LLC in Orlando, Fla., to acquire SenDEC's electronics manufacturing operations and about $30 million in cash in exchange for the issuance of 22 million API common shares to an affiliate of Vintage.
Combining SenDEC and API will create a mid-tier defense electronics company. "I am excited about this transformation and believe we can take the company to the next level of defense contracting," says Phillip DeZwirek, chairman and chief executive officer of API. The acquisition will "create a truly diversified defense electronics company," adds Ken Fiske, chief executive officer of SenDEC.
The acquisition calls for SenDEC to operate as API subsidiary. API will pay down its existing debt with the $30 million of cash acquired in this transaction and emerge with net cash on its balance sheet, company officials say. SenDEC's merger with API doubles the size of the company. The transaction has already been approved by the boards of directors of API and SenDEC.