Cubic Strikes $200M Deal for Remaining Stake in Pixia; Bradley Feldmann Quoted

Jeff Brody
Bradley Feldmann

Cubic (NYSE: CUB) has exercised an option in a purchase agreement to acquire the remaining 80 percent stake in Herndon, Va.-based commercial software firm Pixia for approximately $200M.

Cubic said Wednesday it expects the all-cash transaction to conclude by February 2020 and will use borrowings under its existing credit facilities to fund the deal.

Pixia offers cloud-based platforms designed to access and manage large amounts of imagery data, wide-area motion imagery and geospatial data for U.S. intelligence agencies and other government customers.

Bradley Feldmann, chairman, president and CEO of Cubic, said Pixia builds up the company’s command, control, intelligence, surveillance and reconnaissance digital platform and battlefield cloud strategy. He added that the combined firm will offer best-in-class platforms to help the intelligence community address big data challenges.

In August, Cubic announced that it acquired a 20 percent stake in Pixia for $50M in cash to expand the portfolio of its mission solutions business.

Cubic Mission Solutions saw its sales rise 32 percent to $125.5M during the fourth quarter of fiscal 2019 and posted a 59 percent increase in full-year sales, demonstrating growth from all product lines, specifically secure network products and expeditionary satellite communications.

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