Defense integrator Cobham to acquire rad-hard IC specialist Aeroflex in $1.46 billion deal
PLAINVIEW, N.Y., 21 May 2014. Defense systems integrator Cobham plc in Wimborne, England, will acquire microelectronics specialist Aeroflex Inc. in Plainview, N.Y., for $1.46 billion to boost Cobham's capabilities in communications and digital connectivity.
Aeroflex specializes in RF and microwave integrated circuits, as well as components and systems for development and testing of technically demanding, high-performance equipment for critical and harsh environments and wireless communication systems. The company also has expertise in radiation-hardened integrated circuits.
Aeroflex also focuses about 70 percent of its business on high-growth commercial segments, Cobham officials say, which could help Cobham diversify its aerospace and defense business.
Cobham has core expertise in technologies and subsystems for harsh environments across commercial, defense, and security markets, from deep space to the depths of the ocean, company officials say. The company focuses on satellite communications; defense electronics; air-to-air refueling; aviation services; life support; and mission equipment.
“We believe Aeroflex and Cobham are a natural fit and that Aeroflex will benefit from the larger scale, market presence, and resources of the combined organization," says Aeroflex CEO Len Borow.
The Aeroflex acquisition will increase Cobham's exposure to growing commercial segments and strengthen Cobham's presence in wireless, space, microelectronics, industrial, energy, and other sectors, Cobham officials say.
"The acquisition of Aeroflex is absolutely aligned with our strategic objective to obtain more exposure to growing, commercially oriented end markets that increasingly demand more data, connectivity, and bandwidth," says Cobham Chairman John Devaney.
Aeroflex has two principal business segments: Aeroflex Microelectronic Solutions and Aeroflex Test Solutions. Microelectronics provides rad-hard integrated circuits for the commercial wireless communications, space, avionics, defense, medical, and other industries.
Aeroflex Test Solutions, meanwhile, provides test and measurement hardware and software for commercial wireless communications and space, avionics, and defense applications.