Argon to Acquire San Diego Research CenterJune 12, 2006
Acquisition of wireless networking provider strengthens Argon's position as end-to-end sensor system provider.
FAIRFAX, Va. /BUSINESS WIRE/ -- Argon ST, Inc., announced that it entered into a definitive merger agreement to acquire San Diego Research Center Inc. (SDRC) for $41,000,000 cash. In addition, Argon ST has agreed to pay retention bonuses of approximately 10% of the purchase price over four years, which will be charged to operations. Pursuant to the transaction, a wholly owned subsidiary of Argon ST will merge with and into SDRC. The acquisition is subject to customary conditions, which the parties expect will be met to facilitate a closing within 30 days.
SDRC is a rapidly growing leader in wireless communications networks and has achieved significant growth by addressing challenging and important opportunities in the defense sector. The company has developed unique wireless technology in diverse areas, such as mobile ad hoc networking with directional antennas, mobile-networked, multiple-input, multiple-output communications, and wireless strain gauges for gas turbine engines. SDRC is the lead system integrator for the Operational Test - Tactical Engagement System Communications Upgrade for the Army's Operational Test Command test range at Ft. Hood, Tex. This long-term program was captured by leveraging the company's strengths in systems engineering and development management, as well as its wireless network communications expertise.
Terry Collins, Argon ST president and CEO, stated, "The acquisition of SDRC fills a niche in our goal to be a complete end-to-end sensor system provider. Their cutting-edge technology in wireless sensor networking will complement our capabilities and fits extremely well into our long-term strategy."
Lindsey McClure, president of SDRC, commented, "Argon is a perfect partner for SDRC. The acquisition enables access to customers and resources to speed the transition of our technology into both military and commercial markets, and it enables Argon to expand its role in the delivery of these systems." SDRC will continue to operate from its San Diego headquarters.
Headwaters MB, LLC, acted as financial advisor to SDRC in this transaction.
Argon ST designs, develops, and produces systems and sensors for the command and control, communications, computers, intelligence, surveillance, and reconnaissance markets, including signals intelligence, electronic support measures, electronic warfare, imaging, and acoustic systems serving domestic and worldwide markets.
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