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Valiant Signs $135M Cash Deal to Buy Cubic’s Global Defense Services Business

Valiant Integrated Services has agreed to acquire Cubic’s (NYSE: CUB) global defense services business for approximately $135 million in cash in a push to expand its client base and broaden its technical platforms and service offerings in training and readiness markets.

Valiant CEO James Jaska said in a statement published Thursday the company expects the transaction to help build up its “position in core mission support markets.”

McLean, Va.-based Valiant works to provide base operations and support services, expeditionary logistics, contingency contracting, subsistence and commodity supply chain and facilities management support to U.S. government agencies, allies and international organizations.

Valiant expects to operate with over 5,000 employees in at least 30 states and more than 20 countries worldwide upon the deal’s closure.

Bradley Feldmann, Cubic chairman, president and CEO, said in a statement the company regularly assesses its portfolio to ensure that resources are focused on strategic markets and expects the sale proceeds to help increase its financial flexibility to advance growth opportunities.

The transaction includes approximately $3 million in additional payment to Cubic contingent on contract wins over the next 12 months to two years and is anticipated to close within 30 to 60 days, subject to regulatory approvals and other customary closing conditions.

Cubic’s defense services business, which posted $378 million in fiscal 2017 revenue, delivers training, technical, operations, maintenance and intelligence support services to government agencies and allied countries and has approximately 3,500 employees in 10 countries worldwide.

Raymond James & Associates and Holland & Knight LLP respectively acted as Cubic’s investment banking adviser and legal counsel in the transaction.

Akin Gump Strauss Hauer & Feld LLP, Conferre Capital, Candlewood Partners and Crowell & Moring LLP served as Valiant’s advisers in the deal.

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