Secure Communication Systems, a designer and manufacturer of rugged computer and information assurance systems and a portfolio company of Vance Street Capital, has acquired Tactical Micro from Relativity Capital.
Tactical Micro, acquired by Relativity Capital in December 2010, is an engineering systems integration company specializing in range instrumentation and audio/video broadcasting and recording systems for use in military training, metropolitan security systems and other surveillance applications. The company is headquartered in Fredericksburg, VA (www.tacticalmicro.com).
“This acquisition is a strong strategic fit for Secure Communication and we expect Tactical Micro’s transition to be seamless,” said Brian Martin, principal at Vance Street Capital. “Having Tactical Micro on board will help us further diversify Secure Communication’s end markets.”
Secure Communication Systems designs and manufactures C4ISR systems (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance), encryption equipment, wireless communications products and other components for defense, transportation, commercial aviation and industrial applications. The company’s products include handhelds, rugged tablet PCs, workstations and servers, routers, accessories, translators, tactical displays, and ultra-mobile PCs for various branches of the military as well as for civilian applications. The company was founded in 1986 and is based in Santa Ana, CA (www.securecomm.com).
Tactical Micro is the third add-on acquisition completed by Secure since being acquired by Vance Street Capital in October 2009. In September 2013, Secure acquired Lark Engineering (San Juan Capistrano, CA), a designer and manufacturer of RF Filters used by commercial, industrial, and military businesses (www.larkengineering.com). In May 2013, Secure completed its first add-on acquisition with the buy of Smart Electronics & Assembly (Anaheim, CA), a provider of electronic circuit boards, sub-assemblies, cable/harnesses and modules/box builds to the defense, commercial aerospace, industrial and homeland security markets (www.smartelec.com).
Fifth Third Bank provided senior debt financing and Babson Capital provided mezzanine debt financing for this transaction. Relativity Capital and Tactical Micro retained Kipps DeSanto & Co. as investment banker and Hogan Lovells as legal advisor.
Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include precision industrial manufacturing, aerospace & defense, and medical components & devices. The firm is based in Los Angeles (www.vancestreetcapital.com).
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