Cubic Corp. has acquired the special operation forces training business of NEK Special Programs Group for $52 million, expanding its national security-related, mission critical capabilites.
Cubic Corp. has acquired the special operation forces training business of NEK Advanced Securities Group Inc., and has created a new subsidiary around it.
The company spent $52 million, in cash, to expand its mission critical capabilities within in the national security market, Cubic said in a release.
The new subsidiary is called NEK Special Programs Group LLC. It will fall under Cubic Mission Support Services, led by Jim Balentine.
The transaction adds 200 new employees and bolster’s Cubic’s knowledge base in advanced tactical training, surveillance and counter surveillance, mission planning and personnel recovery, the company said.
“NEK is one of the few private contractors specializing in mission critical training and direct support activities for the U.S. Special Operations Command, Joint Special Operations Command and Theater Special Operations Command units,” said Jay Thomas, Cubic senior vice president of finance and corporate development.
Balentine added that the “acquisition is in line with the Pentagon’s strategic goal of increasing special forces training to meet the needs of reduced military spending.”
Two of NEK’s senior leaders, Bo Todd and Jeff Keers, will serve as executives of the new Cubic subsidiary, but information pertaining to which roles the two would fill was not disclosed.
In addition, NEK Advanced Securities Group founders and CEOs, Bruce Parkman and Tony Porterfield, will serve as consultants to Cubic, the company said.
With the sale, NEK Advanced Securities Group is changing its name to the Macalan Group and will be comprised of NEK's two other subsidiaries: NEK Cyber Operations Group LLC and NEK Intelligence Services Group LLC, which will become the Cyber Operations Group and Blue Light Services. Management will continue under Bruce Parkman. Rampart Aviation and Beowulf Construction will operate under the management and direction of Tony Porterfield.
“We feel this divestiture is the logical next step to continuing the unique operations we have established,” Parkman said in a statement. “We are both looking ahead to successful growth in our respectful endeavors while we assist Cubic in establishing themselves as the industry leader in SOF related training and expertise.”
The investment bank Kipps DeSanto served as an advisor to NEK in the sale to Cubic.
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