Cubic Corp. (NYSE: CUB) has acquired modular networking and baseband communications equipment provider DTECH LABS Inc. for $114.5 million.
Bradley Feldmann, president and CEO of Cubic, said Tuesday the DTECH acquisition is part of the company’s “near-term strategy to build a niche $100 [million] to $200 million C4ISR business generating mid-teen EBITDA margins.”
Sterling, Virginia-based DTECH develops networking products for portable, man-packable, vehicular and airborne applications.
“We welcome the DTECH team to Cubic and look forward to working with them to leverage our combined capabilities, talent, technology, innovation and outstanding customer relationships, ” Feldmann said.
Cubic expects the transaction to increase the company’s earnings beginning in fiscal year 2016.