Innovative Solutions & Support, a systems integrator that designs and manufactures flight guidance and cockpit display systems for OEMs and retrofit applications based in Exton, Pennsylvania, has entered into an exclusive licence and acquired key assets for certain inertial, communication and navigation product lines from Honeywell International.
Shahram Askarpour, chief executive officer, says: “We are pleased to announce the exclusive licensing of these product lines from Honeywell Aerospace. This is a unique opportunity that enhances our current offerings in the air transport, military and business aviation markets. In addition, there are potential cost synergies from leveraging our skilled engineering team and better utilising existing operational capacity in Exton. We also believe this agreement can help to accelerate growth of the IS&S franchise by enhancing our global reputation for delivering some of the industry's best price-for-performance value propositions.”
Under the asset purchase and licence agreement, IS&S will license the exclusive intellectual property rights to manufacture, upgrade and repair certain Honeywell inertial, communication and navigation products. The purchased assets include existing inventory as well as test, tooling and other equipment required to manufacture, repair and upgrade the products.
Mike Linacre, chief financial officer, adds: “These product lines have attractive margin profile characteristics that are an essential element of our strategy. Consequently, once they've been integrated into our operations, we expect the transaction to materially contribute to our revenues and EBITDA. We also expect the resulting EPS to be accretive in fiscal 2024, with the potential for additional net income increases in future years from various synergies.
“Coincident with this acquisition, IS&S has secured bank facilities to maintain ample liquidity for ongoing operations and potential future acquisitions. These facilities and cash on hand were used to fund the total purchase price for the transaction.”