Cubic Corp. acquires TeraLogics LLC, agrees to buy GATR Technologies

Transportation, communications and defense solutions company Cubic Corp. has acquired TeraLogics LLC and has agreed to acquire GATR Technologies Inc., Cubic said on Monday.

 “The acquisition of TeraLogics and GATR represents powerful next steps in achieving our C4ISR growth strategy as they expand our footprint in the C4ISR and SATCOM markets,” Bradley Feldmann, Cubic's president and CEO, said. “The transformation of Cubic Global Defense Systems is well underway with these acquisitions, coupled with the excellent performance from DTECH, which we acquired in fiscal year 2015. Having established a focused strategy in the C4ISR sector, we are working aggressively to build scale with increased shareholder returns in higher-growth and higher-margin markets.”

San Diego-based Cubic is excited about the acquisitions, as it will increase Cubic’s foothold in the defense-systems industry, which it has sought to do  expand its defense systems business by creating a Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) portfolio that emphasizes secure and expeditionary communications, as well as ISR Processing, Exploitation and Dissemination (PED).

Cubic acquired Ashburn, Virginia-based TeraLogics, a real-time full-motion video PED provider, for $39 million, which includes $9 million in contingent consideration, and has agreed to acquire Huntsville, Alabama-based GATR, a next-generation deployable satellite communication terminal solutions firm, for $232.5 million, which includes $7.5 million in contingent consideration.

“We look forward to working with the TeraLogics and GATR leadership teams and employees,” Mike Twyman, executive vice president for communications, intelligence and surveillance systems for Cubic Global Defense, said. “Their collective expertise, talent and innovative cultures will be an asset to Cubic, allowing us to better serve our customers.”