HEICO to Acquire Lucix Corp.
Hollywood, Fla., September 12, 2013 — HEICO Corp. has entered into a definitive agreement to acquire Lucix Corp., a designer and manufacturer of high performance, high reliability microwave modules, units, and integrated sub-systems for commercial and military satellites.
HEICO said the purchase will be made for an undisclosed amount of cash to be paid at closing and future potential cash payments if Lucix should meet certain performance criteria. Lucix's financial information was not disclosed.
HEICO said it expects the acquisition to be accretive to its earnings within the first year following the acquisition. The acquisition is subject to expiration of the regulatory waiting period and is expected to close within 60 days.
Founded in 1999, Lucix's products include converters, receivers, transmitters, amplifiers, frequency sources and related sub-systems that address all major satellite frequencies including UHF, L, S, C, Ku, Ka, and Q bands. The majority of its revenue is derived from commercial satellite payload hardware and its products can be found on more than 40 orbiting Geosynchronous Orbit satellites.
Headquartered in Camarillo, CA, Lucix employs 140 people. Lucix's entire management team, led by its Chief Executive Officer, Dr. Mark Shahriary, will remain with the company in their existing positions. HEICO stated that it does not expect any employee turnover to result from the acquisition.
Laurans A. Mendelson, HEICO's Chairman and Chief Executive Officer, said Lucix is another perfect fit for HEICO. “This acquisition expands our very successful satellite and space component operations by adding a team of some of the world's most admired designers and makers of satellite electronics,” he said.
Victor H. Mendelson, HEICO's Co-President and the President and Chief Executive Officer of its Electronic Technologies Group, noted that Lucix's purchase is consistent with the company’s acquisition strategy: acquiring successful, well-managed, technical businesses which continue to operate post-closing just as they operated pre-closing.
In addition to Dr. Shahriary's and management's ownership, Lucix's other owners are primarily three venture capital funds: Palisades Ventures, Saints Capital and Shepherd Ventures.
Moelis & Company acted as exclusive financial advisor to Lucix.