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BRIEF-KeyW to acquire Sotera Defense Solutions
March 8, 2017 / 10:07 PM / 7 months ago

BRIEF-KeyW to acquire Sotera Defense Solutions

March 8 (Reuters) - KeyW Holding Corp:

* KeyW enters into definitive agreement to acquire sotera defense solutions

* KeyW Holding Corp - all-cash transaction valued at approximately $235 million

* KeyW Holding Corp - deal projected to be immediately accretive to adjusted eps in fiscal year 2017

* Says Sotera will become a wholly-owned subsidiary of KeyW Corporation following transaction

* Deal inclusive of an expected $46 million net present value of acquired tax benefits

* KeyW Holding Corp - KeyW intends to fund transaction with proceeds from a new secured credit facility arranged by RBC Capital Markets and cash on hand

* KeyW Holding Corp - under terms of agreement, Sotera will become a wholly-owned subsidiary of KeyW Corporation following transaction

* Says on a pro-forma basis, combined company is expected to generate approximately $535 million in revenue

* KeyW Holding Corp - deal projected to be significantly accretive to 2018 gaap EPS

* KeyW Holding Corp -on a pro-forma basis, combined company is expected to generate more than $55 million in adjusted EBITDA in 2017 before synergies

* KeyW - transaction expects to yield approximately $3.5 million of cost synergies within fiscal year 2017, and approximately $7 million within 12-18 months Source text for Eikon: Further company coverage:

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