A&D Weekly News & Transactions - Week 38

Industry Headline News

Veritas Capital Raises $14.4 Billion to Be “DoD’s Biggest Private Equity Ally”
Sep. 19, 2025 - Veritas Capital has closed $14.4 billion for its latest fund, aimed at increasing its role as a major investor in defense and national security companies, particularly within the U.S. Department of Defense and intelligence sectors. – The firm plans to deploy the capital toward firms involved in advanced technologies like cybersecurity, cloud infrastructure, and AI, continuing its focus on government tech contracts and classified work. – Key backers include sovereign wealth funds, pension funds, and other institutional investors; the fund will compete with firms like Carlyle, KKR, and Thoma Bravo for defense-sector deals. (Forbes)

GE Aerospace Reaches Five-Year Labor Deal With 600 Striking UAW Workers
Sep. 19, 2025 - GE Aerospace settled a labor dispute with over 600 United Auto Workers at its Evendale, Ohio, and Erlanger, Kentucky facilities, ending a three-week strike. The agreement spans five years, with base wage increases of 3-5% annually through 2029, plus about $3,500 in cash payments for each employee to offset rising health care costs. Production impacts included facilities making marine/industrial engines and parts for engine plants of the U.S. Navy. (Reuters)

Boeing’s Orberg: Striving for parity with Airbus deliveries
Sep. 17, 2025 - Boeing CEO Kelly Ortberg said at the Morgan Stanley Laguna Conference that Boeing is getting close to matching Airbus’s delivery levels, noting that last month Boeing was “almost at parity” with Airbus in aircraft deliveries. (Leeham News and Analysis)

Space Is the New Frontier of War, Officials Say in Change of Tone
Sep. 17, 2025 - NATO space-force leaders from Germany, France, Spain and other allies declared that space has shifted into a war-fighting domain, urging faster intervention, updated doctrine, and improved operational posture. Germany plans to finalize a military space-defense architecture by year-end that includes a multifunctional, multi-orbit satellite constellation and enhanced ground infrastructure. The statement reflects growing concern over Russian and Chinese capabilities like anti-satellite weapons, orbiters, electronic warfare, and laser interference. (Defense News)

RTX’s Collins Aerospace Awarded NATO Contract for Electromagnetic Warfare Command and Control System
Sep. 16, 2025 - Collins Aerospace, an RTX business, won a NATO Communications and Information Agency (NCIA) contract to supply its Electronic Warfare Planning and Battle Management (EWPBM) software, which offers a Recognized Electromagnetic Picture and an Electronic Order of Battle. The system aggregates data from operational sources and intelligence systems to help commanders visualize electromagnetic threats and automate the use of sensors and jammers. The capability seeks to enhance interoperability, resilience, and joint war-fighting across NATO’s member nations. (RTX)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	Background Investigation assets of General Dynamics [General Dynamics] Xcelerate Solutions [McNally Capital]	-	-	-	Falls Church, VA	Cybersecurity, Intelligence Services and Homeland Defense
2	Vector Atomic IonQ	$391.0	-	-	Pleasanton, CA	Sensors & C4ISR
3	Phase Four Apex Space	-	-	-	Hawthorne, CA	Satellite, Satellite Services & Space Systems
4	Calca Solutions [AE Industrial] NewMarket Corp.	-	-	-	Westlake, LA	Satellite, Satellite Services & Space Systems

No.	Target Descriptions
1	The Background Investigation assets of General Dynamics are government-contracting capabilities focused on conducting personnel background investigations, security clearances, and vetting services for federal agencies. The assets include systems, processes, personnel, and contracts used to provide background check services for homeland security, defense, and intelligence domains.
2	Vector Atomic is a developer of rackmount optical atomic clocks, gravimeters, and advanced quantum inertial sensors for positioning, navigation, and timing (PNT) applications in private sector and U.S. federal government aerospace, defense, and maritime markets. The company's PNT systems enable ultra-precise detection and reliable navigation immune to signal jamming, and other types of cyber threats.
3	Phase Four is a provider of next-generation electric propulsion (EP) solutions for small satellites in private sector and U.S. federal government aerospace and defense markets. The company's flagship platform, Valkyrie, is based on the NASA-licensed "H71M" Hall-effect Thruster (HET), and is specifically designed for operations from LEO to Cis-Lunar environments.
4	Calca is a specialist manufacturer of hydrazine products, including hydrazine propellants, anhydrous hydrazine, hydrazine hydrates, monomethyl hydrazine, H-70 propellant, and ScavOx. The company's products are utilized for in-space propulsion by satellites, space probes and other space vehicles.