Cubic Corp. (NYSE: CUB) has acquired the operating assets of NEK Special Programs Group LLC, the special operations training subsidiary of NEK Advanced Securities Group for $52 million cash.
Cubic said the transaction closed Dec. 14 and Jim Balentine, president of Cubic’s mission support services business unit, will oversee the subsidiary’s assets at Cubic.
NEK executives Bo Todd and Jeff Keers join Cubic to serve on the subsidiary’s executive team and Bruce Parkman and Tony Porterfield, co-founders and co-CEOs of the subsidiary, will serve as consultants to Cubic.
“NEK is one of the few private contractors specializing in mission critical training and direct support activities for the United States Special Operations Command, Joint Special Operations Command and Theater Special Operations Command units, ” said Jay Thomas, Cubic’s senior vice president of finance and corporate development.
“We see many synergies associated with Cubic’s breadth of technologies and service offerings, and expect to further expand our business through these combined resources, ” Balentine said. “This acquisition is in line with the Pentagon’s strategic goal of increasing special forces training to meet the needs of reduced military spending.”
“Bruce and I look forward to helping Cubic continue to grow the special operations forces business knowing that our dedicated and unparalleled employees will be well taken care of as part of the Cubic family of companies, ” Porterfield said.
More than 200 NEK employees will join Cubic, which said those employees bring knowledge in advanced tactical training, surveillance, counter-surveillance, mission planning and personnel recovery.
Investment bank KippsDeSanto & Co. acted as financial adviser to NEK for the transaction.
