To strengthen its presence in the microwave passives marketplace, Cambridge, Ontario, Canada based COM DEV USA, LLC, a subsidiary of COM DEV International Ltd., has reached an agreement with L-3 Communications to acquire its passive microwave devices product line for $12.2 million. This productline will be acquired from L-3’s Electron Technologies Inc.-PMD (ETI-PMD) group, which has a 35 year history as a key supplier to the US space market and has a contract backlog which includes a number of legacy contracts on major ongoing US government and commercial satellite programs. ETI-PMD’s 65 employees and its assets and equipment will be transferred from their existing location in Torrance, Calif to COM DEV’s recently purchased production facility in El Segundo, Calif., approximately 10 miles away.

COM DEV launched its U.S. operations last year, purchasing a 46,000 square foot facility in El Segundo, Calif. The Company recognized that a domestic presence is essential to participating fully in the U.S. government space market, which accounts for 50% of global space spending, according to COM DEV.

“The acquisition of a business with an established revenue stream accelerates our entry into the US Government space market, and vaults COM DEV into a leadership position among US suppliers of passive microwave equipment for space,” said John Keating, CEO of COM DEV International. “We think this business is a great fit with our core capabilities and strategic objectives, and we plan to grow it aggressively.”

Originally a unit of Hughes Electronics Corp, ETI was purchased by Boeing as part of a larger transaction in 2000, and subsequently sold to L-3 Communications in early 2005. The PMD product group brings over 35 years of experience on more than 100 US satellite programs, designing and producing space qualified passive microwave components including multiplexers, filters, switches and ancillary components. The company will be acquiring significant intellectual property resources developed over that period, including over 100 patents.

“We are very pleased to strengthen COM DEV USA by adding a team with more than 1000 combined person-years of experience, as well as a significant body of intellectual property dating back to the time this business was part of Hughes,” said Dan White, President of COM DEV USA. “We believe this transaction creates a passive microwave subsystem powerhouse that will become an integral supplier to the US Government prime contractors.”

The ETI-PMD transaction, which is subject to regulatory approval, is expected to close within the next three months. The final purchase price will be subject to certain closing adjustments, according to COM DEV.

www.comdevintl.com

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