U.S. Markets open in 5 hrs 12 mins

Astronics acquires assets and liabilities from AeroSat for $12M

Astronics announced that it has acquired certain assets and liabilities from AeroSat Corporation, a supplier of aircraft antenna systems, for $12M in cash, plus the potential for an earn out. Astronics expects the earnout will be between $5M-$20M. AeroSat designs and manufactures fuselage and tail-mounted antenna systems for commercial transport, business jet, and military aircraft customers around the world. AeroSat, which is based in Nashua, NH and currently has approximately 40 employees, is expected to have sales of approximately $12M-$14M in calendar year 2013. AeroSat's President, Dennis Ferguson, will continue to run the AeroSat operations. Earnout payments will be due if AeroSat's 2014 revenue exceeds $30M and if 2015 revenue exceeds $40M Earnout payments increase with revenue and are capped at $53M. Astronics expects 2014 revenue from AeroSat will total $20M-$40M; this would suggest a range from no earnout up to $3M in earnout awarded.