Veritas Capital has agreed to acquire the CAES Space Systems business of CAES, a portfolio company of Advent International.
CAES Space Systems (CSS) is a provider of high-reliability (hi-rel), radiation-hardened (rad-hard) components, cabling, waveguides, antennas, and power management products that are used in space, defense, healthcare, and industrial applications.
According to the company, its products have had a presence on all historical major United States space platforms with a 100% mission success rate. CSS is headquartered in Colorado Springs, Colorado. Mike Elias, the senior vice president and general manager of CSS, will continue to lead the group, alongside other members of its senior management team.
“Through our focus on innovation and differentiated technology, CAES Space Systems has become the preeminent provider of space-qualified, mission-critical components and solutions,” said Mr. Elias. “We are excited to partner with Veritas, a premier government technology investor that brings deep domain expertise and knowledge of our end markets. I am confident that Veritas is the perfect partner for CAES Space Systems as we enter our next stage of growth.”
“CAES Space Systems is uniquely differentiated by the breadth of its technical capabilities and segment expertise, as well as its long history of delivering critical solutions to customers,” said Ramzi Musallam, the chief executive officer and managing partner of Veritas. “Operating in space and defense markets supporting national security, CAES Space Systems is well-positioned to thrive as a standalone business under Veritas ownership. We will deploy our significant government technology experience working with Mike Elias and the rest of the CAES Space Systems team to accelerate growth and value proposition to customers.”
CAES is a provider of advanced electronics components used in missile defense radars, electronic warfare systems, spacecraft and satellites. The company was founded in 1934 by Sir Alan Cobham and is headquartered in Arlington, Virginia. Advent acquired CAES (then Cobham Advanced Electronic Solutions) for £4 billion in January 2020 and rebranded the company as CAES in February 2021.
Advent International invests in companies active in business and financial services; healthcare; industrial; retail, consumer, and leisure; and technology, media and telecom. The firm has 15 offices in 12 countries and employs over 250 investment professionals across North America, Europe, Latin America, and Asia. Founded in 1984 and headquartered in Boston, Advent has $86 billion in assets under management and has completed more than 390 private equity transactions.
Veritas Capital invests in companies active in the aerospace and defense, healthcare, technology, national security, communications, energy, and education sectors. The firm is headquartered in New York City.
Goldman Sachs and Lazard Frères are the financial advisors to CAES on this transaction.
The buy of CSS is expected to close during the first quarter of 2023.
© 2022 Private Equity Professional | October 19, 2022
