A&D Weekly News & Transactions - Week 32

Industry Headline News

Boeing secured a $2.56 billion contract from the U.S. Air Force to develop and support two E-7A Wedgetail aircraft
Aug. 9, 2024 - This contract includes lifecycle development, training, and fleet support. Despite recent internal challenges, Boeing’s ability to supply these aircraft remains unaffected. (Reuters)

Airbus celebrated the production of its 500th Alabama-made aircraft despite ongoing global supply chain challenges, which have delayed production ramp-ups
Aug. 9, 2024 - The Mobile facility, which has grown to become a major aerospace hub, is expanding further with a new assembly line, and plans to double production capacity by 2027. (AL)

Boeing CEO Kelly Ortberg expressed pride and excitement about joining the company and emphasized the need to restore trust through commitment to high quality and safety
Aug. 8, 2024 - He plans to be closely involved with production and development, starting with a visit to the Renton factory, and will provide transparent updates on progress. (Boeing)

Anduril Industries has raised $1.5 billion in a Series F funding round to scale its defense manufacturing, valuing the company at $14 billion
Aug. 7, 2024 - The funding will support the development of Arsenal-1, a 5 million square foot facility designed to produce tens of thousands of autonomous weapons systems annually, addressing the critical need for scalable defense production. (Anduril)

Cathay Pacific has announced the purchase of 30 or more Airbus A330-900 aircraft, as part of a HK$100 billion investment in its fleet and infrastructure
July 30, 2024 - Deliveries will start in 2028 and be completed by 2031, with the new aircraft expected to replace older models and be used primarily for regional flights within Asia. Rolls-Royce will supply 60 Trent 7000 engines for these planes, which are expected to significantly reduce fuel consumption and carbon emissions. (Reuters)

Spirit AeroSystems reported a significant increase in losses for the second quarter
July 30, 2024 - With net losses widening to $415 million due to reduced 737 fuselage shipments to Boeing and ongoing issues with Airbus' A220 program. The company delivered fewer fuselages than expected, struggled with cash flow, and faced higher costs, leading to a $597 million cash burn. (Reuters)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	NWL American Superconductor	$61.4	1.1x	-	Bordentown, NJ	Defense Electronics
2	Boldend SIXGEN [Washington Harbour]	-	-	-	Austin, TX	Government Services, IT Services and Software
3	Vivace Cerberus Capital	-	-	-	San Antonio, TX	Satellite, Satellite Services & Space Systems
4	Deimos Space [Elecnor] Indra Sistemas	-	-	-	Tres Cantos, Spain	Satellite, Satellite Services & Space Systems
5	XSB Exiger	-	-	-	Setauket, NY	Government Services, IT Services and Software
6	Cryptic Vector Enlightenment Capital	-	-	-	Liberty Township, OH	Government Services, IT Services and Software

No.	Target Descriptions
1	NWL is a manufacturer and designer of transformers, inductors and power supplies for industrial and defense applications. The company leverages a collaborative design and development approach to provide customized solutions for power supplies and transformers.
2	Boldend is a developer of cyber and electronic warfare solutions for private sector and U.S. federal government defense markets. The company's solutions empower organizations to effectively manage lower-tier, medium—to low-risk operations and enable strategic competition while minimizing operational risks.
3	Vivace develops mission-critical propulsion tanks for private sector and U.S. federal government spaceflight, hypersonics, and launch vehicle markets. The company is a supplier to the Commercial Lunar Payload Services program, which will land numerous missions on the lunar surface as part of the larger Artemis program, through primes such as Lockheed Martin and Northrop Grumman.
4	Deimos is a provider of systems integration solutions for international government aerospace, defense, satellite systems, remote sensing, information systems and telecommunications network markets. The company's space expertise includes mission analysis, system engineering, guidance, navigation and control (GNC), attitude and orbit control (AOCS), ground segment, on-board software, space surveillance and tracking and satellite design and integration.
5	XSB develops AI-based applications to transform unstructured data into actionable intelligence for private sector and U.S. federal government aerospace, defense. and energy markets. The company's SWISS platform transforms static documents and drawing notes into interoperable and reusable digital data objects (requirements, tables, equations, more) that help companies reduce time, cost, and risk throughout the product lifecycle.
6	Cryptic Vector is a provider of full spectrum offensive cyber, electronic warfare, and secure radio frequency communications solutions for private sector and U.S. federal government defense and intelligence markets. The company specializes in the design and development of extremely low size, weight, and power (SWaP) RF products.