Defense Electronics M&A Transactions - February 2025

Download and read the February 2025 issue of the Defense Electronics Monthly, covering the latest M&A deal news and valuation trends in the defense electronics sector, including activity in segments such as C4ISR and electronic warfare, rugged electronics, RF & microwave, embedded computing, interconnects, microelectronics & semiconductor and test & measurement. Sign up for the Defense Electronics Monthly distribution list to stay up-to-date on the headline acquisitions impacting your market and the current dynamics of the publicly traded strategic companies within the industry.

Key Defense Electronics Deals Announced

Target	Buyer	Description
a portfolio company of		Target: Ann Arbor, MI-based Arotech is a provider of training and simulation, portable power systems, and advanced electronics services to private sector and U.S. federal government aerospace, civil, and defense markets. Buyer: Rockville, MD-based Albion River is a private investment firm targeting companies that produce highly technical defense products and services. The company leverages a team of expert advisors and an extensive network of industry professionals to support its investments. Terms: Transaction announced on February 3, 2025. Terms not disclosed.
		Target: Poway, CA-based EpiSci develops next-generation autonomous technologies for defense, aerospace, and commercial applications for private sector and U.S. federal government defense markets. EpiSci's flagship product, SwarmSense, is a scalable and customizable groundbreaking software + hardware system that uses AI, machine vision and mesh networking. Buyer: Mountain View, CA-based Applied Intuition develops simulation and software tools for autonomous vehicle development, focusing on testing, validation, and deployment. The company serves automotive, defense, and robotics markets. Terms: Transaction announced on February 6, 2025. Terms not disclosed.
		Target: Hudson, NH-based G5 is a provider of high performance mid wave zoom thermal imaging camera systems and thin film deposition services on a variety of infrared substrates for private sector and U.S. federal government aerospace markets. The company offers complete build to print services for lens elements, windows, and filters. Buyer: Orlando, FL-based LightPath Technologies designs and manufactures precision optical and infrared components, including molded aspheric lenses, thermal imaging optics, and fiberoptic collimators. The company serves defense, industrial, and telecommunications markets. Terms: Transaction announced on February 13, 2025. Purchase price of $50M, 12.5x forward 12-month EBITDA. Total consideration includes $20.25M in cash, $6.75M in stock, and an earn-out of up to $23M over 24 months based on sales and EBITDA thresholds.
		Target: India-based Vector Technics specializes in designing and manufacturing electric propulsion solutions, including BLDC motors, speed controllers, propellers, and power distribution systems. The company serves the UAV and robotics markets, providing high performance components for various applications. Buyer: India-based Zen Technologies develops training and simulation solutions, including combat training systems, live-fire ranges, and anti-drone technologies. The company primarily serves the defense and security markets. Terms: Transaction announced on February 14, 2025. Terms not disclosed.