Astronics Acquires AeroSat - Quick Facts

(RTTNews) - Astronics Corp. (ATRO), a provider of advanced technologies for the global aerospace and defense industries, announced that it has acquired certain assets and liabilities from AeroSat Corporation, a supplier of aircraft antenna systems, for $12 million in cash, plus the potential for an earn out. Astronics expects the earnout will be between $5 and $20 million.

AeroSat designs and manufactures fuselage and tail-mounted antenna systems for commercial transport, business jet, and military aircraft customers around the world. Its antenna systems are typically used to enable satellite and ground-based communication to aircraft, commonly for broadband and TV applications.

AeroSat, which is based in Nashua, NH and currently has approximately 40 employees, is expected to have sales of approximately $12 million to $14 million in calendar year 2013. AeroSat's President, Dennis Ferguson, will continue to run the AeroSat operations.

The company noted that Earnout payments will be due if AeroSat's 2014 revenue exceeds $30 million and if 2015 revenue exceeds $40 million. Earnout payments increase with revenue and are capped at $53 million. Astronics expects 2014 revenue from AeroSat will total $20 to $40 million; this would suggest a range from no earnout up to $3 million in earnout awarded.