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Honeywell to acquire COM DEV's satellite equipment business

Staff writer |
Honeywell has signed a definitive to acquire Ontario, Canada-based COM DEV International, a satellite and space components provider for an aggregate purchase price of C$455 million ($345 million), net of cash and debt acquired.

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COM DEV's estimated 2015 revenue is approximately C$210 million ($160 million USD). On an adjusted basis, the purchase price translates to approximately ten times COM DEV'S estimated 2015 earnings before interest, tax, depreciation and amortization (EBITDA).

Honeywell is acquiring COM DEV's electrical and optical components and subsystems equipment businesses. COM DEV will simultaneously spin-off its exactEarth subsidiary to current shareholders prior to closing.

The acquisition of COM DEV will create significant value to Honeywell shareholders as the transaction will be principally funded with non-U.S. cash, and drive deal returns consistent with Honeywell's acquisition framework.

Pending government and shareholder approvals, the acquisition is expected to close by the end of the first quarter in 2016.

Found on more than 950 spacecraft and 80 percent of all commercial communication satellites, COM DEV's equipment business complements and expands Honeywell's space product portfolio, its major push into connectivity and boosts the company's presence internationally.

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