A&D Weekly - April 22, 2024

Industry Headline News

Royal Air Maroc CEO has announced the launch of a tender for up to 200 aircraft, aligning with the carrier's ambition to quadruple its fleet in the next decade
Apr. 21, 2024 - This strategic expansion aims to bolster Morocco's tourism industry, which saw a record 14.5 million visitors in 2023 and anticipates further growth to 17.5 million by 2026 and 26 million by 2030, coinciding with plans to co-host the FIFA World Cup with Spain and Portugal. (AeroTime)

The U.S. Air Force and DARPA conducted the first AI-driven dogfights, pitting an experimental fighter against an F-16
Apr. 19, 2024 - The successful tests demonstrated the AI's ability to perform safely and effectively, prompting plans for further refinement and exploration of AI in combat situations. The program potentially impacting the development of autonomous aircraft for various missions, aiming to build trust in responsible AI use. (Defense News)

Supply chain challenges have tempered the growth of the engine market in Q1, despite a 12% rise in overall MRO sales
Apr. 19, 2024 - Engine segment growth lagged at 9% due to parts shortages and slow shop turnaround times, raising concerns for leading OEMs like GE and RTX, particularly in supporting legacy engines such as CFM56 and IAE V2500. (Aviation Week)

Military's shift to small satellites strains space industry, with L3Harris suing Moog over missed deadlines and faulty parts
Apr. 18, 2024 - The surge in demand, especially from Space Development Agency. Shifting to smaller, cheaper satellites has revealed supply chain weaknesses, highlighting challenges in sourcing critical components and scaling production for future satellite constellations. (Space News)

Boeing's engineer-turned-whistleblower claims assembly flaws make the 787 Dreamliner unsafe, risking mid-flight failures
Apr. 17, 2024 - Despite Boeing's confidence in its safety, Sam Salehpour's insistence on halting production. Addressing safety concerns is supported by other potential whistleblowers and his attorney, challenging Boeing's assertions. (CNBC)

Pratt & Whitney is investing $20 million to expand its West Palm Beach Engine Center in Florida
Apr. 16, 2024 - This expansion will increase the integration of new equipment and technologies from the North American Technology Accelerator. The move aims to support the growing GTF fleet and enhance customer service as part of Pratt & Whitney's EngineWise solutions. (Aerospace Manufacturing)

The Space Force emphasizes resilience through satellite proliferation and cybersecurity measures
Apr. 15, 2024 - Led by the Enterprise Resilience Board of the Space Systems Command, their focus includes integrating protective features into initial program requirements and addressing challenges in implementing classified measures across programs. (Defense News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Cognosante Accenture Federal Services [Accenture]	-	-	-	Falls Church, VA	Government Services, IT Services and Software
2	Strategic Management Solutions SE&C Holdings [Bernhard Capital Partners]	-	-	-	Albuquerque, NM	Government Services, IT Services and Software
3	Special Aerospace Services Godspeed Capital	-	-	-	Boulder, CO	Satellite, Satellite Services & Space Systems
4	Ahmic Aerospace CUBRC	-	-	-	Dayton, OH	Test & Measurement

No.	Target Descriptions
1	Cognosante provides technology solutions, business process outsourcing, and consulting services to private sector and U.S. federal government defense and healthcare markets. The company is a member of the AWS Partner Network and also partners with InterSystems. Cognosante serves its customers primarily through its software platforms which include CognoConnected, ESante, and JUVO.
2	SMSI provides a range of program management and project services to the DOE, National Nuclear Security Administration (NNSA), National Laboratories and industrial clients that operate within the Nuclear Security Enterprise. The company's key business lines include procurement and supply chain expertise, special nuclear material and high hazard operations, and decontamination and demolition.
3	SAS is a developer of propulsion, avionics, systems, safety, launch site integration, as well as rapid prototyping, manufacturing, and procurement of mission-critical aerospace hardware systems for private sector and U.S. federal government aerospace and defense markets.
4	Ahmic is a research and development company that specializes in high-performance instrumentation and measurement techniques. They develop tools used to characterize and understand complex flow physics in high-speed test environments, including hypersonic aircraft, scramjet engines, space vehicles, and thermal protection systems.