Secure Communication Systems, a portfolio company of Vance Street Capital, has acquired Smart Electronics & Assembly. This is the first add-on acquisition for Secure Communication Systems since Vance Street acquired the company in October 2009.
Smart Electronics is a provider of electronic products including electronic circuit boards, sub-assemblies, cable & harnesses, and modules & boxes to the defense, commercial aerospace, industrial and homeland security markets. Smart Electronics was founded in 1994 and is based in Anaheim, CA (www.smartelec.com).
Secure Communication Systems designs and manufactures tactical mission computing systems, encryption equipment, communications products and related equipment for defense 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).
“The purchase of Smart Electronics provides both firms with a number of strategic advantages, including new cross-selling opportunities across a broader range of industries,” said Brian Martin, a principal at Vance Street Capital.
Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include precision industrial manufacturing, aerospace & defense, medical components & devices, and business services. The firm is based in Los Angeles (www.vancestreetcapital.com).
Fifth Third Bank provided debt financing for the transaction. O’Melveny & Myers acted as legal advisor to Vance Street Capital and Secure Communication Systems in the transaction. Smart Electronics was represented by Arent Fox.
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-8-13