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by Stephen Perry on Nov 21, 2023
Janes Capital Partners served as Exclusive Financial Advisor to Advatech Pacific in its sale of its Electronics & Communication Division (EC Division) to General Dynamics Mission Systems. The EC Division is a leading designer and manufacturer of cyber-secure, tactical cross-domain Solutions for the U.S. Department of Defense and international militaries.
THE CHALLENGE
Advatech Pacific’s Electronics and Communications Division (EC Division) is a designer and manufacturer of cyber-secure, tactical cross-domain solutions for the U.S. Department of Defense and international militaries. Despite the rapid growth the Business was experiencing, its small scale and niche market application presented challenges to the sale process. In addition, although the Business had secured contracts with several notable military programs, its steep forecast was met with concerns surrounding the sustainability of its product’s technology edge and leading position in the emerging tactical cross-domain market.
THE SOLUTION
Janes Capital Partners ran a focused, highly targeted M&A process, identifying primarily strategic buyers with the capabilities to realize meaningful synergies with the Business. Janes Capital leveraged its strong relationships with the industry’s most prominent defense contractors to effectively communicate the Business’ unique story and market position. In addition, Janes Capital worked closely with the Business’ management team in the development and preparation of the detailed presentations given to interested parties, which successfully articulated the Business’ growth plan and mitigated forecast concerns.
THE RESULTS
Through a disciplined sales process and approaching the most logical buyers with a convincing market and growth story, Janes Capital Partners overcame the hurdles about the current scale of the opportunity and achieved a premium valuation for the Business from a strategic acquirer. General Dynamics Mission Systems is the ideal suitor for Advatech Pacific’s EC Division and will augment the fielding of its cross-domain products to protect the nation’s tactical military networks.