CAMBRIDGE, Ont.—Satellite maker COM DEV International Ltd. has agreed to acquire Pacific Wave Systems (PWS), a manufacturer of waveguides for the global satellite industry, in a US$20.1 million deal.
The Garden Grove, Calif.-based PWS maintains relationships with many large satellite prime contractors, and Com Dev expects the deal to provide growth in the high-throughput satellites category.
“This acquisition is another important step in our strategy of expanding our core space equipment business in areas of market growth,” said Michael Pley, CEO of COM DEV. “PWS is a respected leader in the space waveguide market, and bolstered by the production expertise, scale and 40-year heritage of COM DEV, we believe they can become the dominant player.”
Waveguides play an important part in the overall performance of satellite payloads by directing electromagnetic signals between various components, including the filters and switches that COM DEV produces.
COM DEV intends to explore opportunities to combine waveguides with its other products to deliver value to customers through more integrated solutions.
Approximately 10 per cent of the purchase price represents the equity interest of the PWS management group, with payment deferred and subject in part to the achievement of specified performance targets over the next four years.
The transaction will be financed by a combination of cash-on-hand and debt, and is expected to close in the third quarter of fiscal 2015.