AAR Buys Miami-Based Aircraft MRO & Fleet Management Software Provider Trax For $120M Plus Earn-Out
AAR Corp (NYSE: AIR) has acquired Trax USA Corp., an independent provider of aircraft MRO and fleet management software, for $120 million, plus up to a $20 million earn-out payment.
Trax offers critical software applications to a diverse global customer base of airlines, MROs, and government aircraft operators supporting approximately 5,000 aircraft. It is headquartered in Miami with ~110 employees.
Trax adds established, higher-margin aviation aftermarket software offerings with recurring revenue to AAR's portfolio.
This transaction accelerates AAR's strategy to offer digital solutions focused on its core aviation aftermarket customers. The company expects the deal to increase its margin profile and be accretive to earnings.
"We believe we can support Trax's continued growth by investing in its platforms and by leveraging our global relationships to help Trax reach additional customers. We also believe that over time this combination will allow more customers to better access AAR's parts and services offerings as Trax is the materials management system used by thousands of buyers and planners at airlines around the world," commented John M. Holmes, AAR's Chairman, President, and CEO.
AAR held cash and equivalents of $51.2 million, as of November 30, 2022.
Price Action: AAR shares are trading higher by 3.30% at $52.31 on the last check Monday.
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This article AAR Buys Miami-Based Aircraft MRO & Fleet Management Software Provider Trax For $120M Plus Earn-Out originally appeared on Benzinga.com
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