Networking the Battlespace

Published in Battlespace
Written by Julian Nettlefold

On November 2, 2020, Curtiss-Wright Corporation (NYSE: CW) announced the acquisition of Pacific Star Communications, Inc. (PacStar) for $400 million in cash. PacStar is a leading provider of secure tactical communications solutions for battlefield network management, including commercial off-the-shelf (COTS)-based rugged, small form factor communications systems, and its proprietary “IQ-Core Software” integrated network communications management software.

The acquisition establishes Curtiss-Wright as a critical supplier of advanced tactical and enterprise network communications solutions supporting a broad spectrum of high-priority U.S. military force modernization programs. The combination of Curtiss-Wright’s mission-critical mobile and secure COTS-based processing, data management and communications technologies with PacStar’s highly complementary hardware and software solutions will enable the delivery of best-in-class platform network integration and tactical data link network management to the warfighter. In addition, it ensures that Curtiss-Wright is well-positioned to benefit from the military’s continued investment in robust, secure and integrated battlefield network management.

The PacStar business will operate within Curtiss-Wright’s Defense Solutions division. The acquisition supports Curtiss-Wright’s financial objectives for long-term profitable growth and strong free cash flow generation. PacStar is expected to generate sales in excess of $120 million in 2020 and is expected to yield significant opportunities for revenue growth. Further, it is expected to be accretive to Curtiss-Wright’s adjusted diluted earnings per share in its first full year of ownership, excluding first year purchase accounting costs, and produce a strong free cash flow conversion rate well in excess of 100%.

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