M&A

Australian firm makes deal to grow US defense footprint

Codan, a communications equipment maker headquartered in Australia, said this week it has agreed to acquire wireless technology company Domo Tactical Communications in a potential $100 million deal to further the buyer’s U.S. defense presence.

Also known as DTC, Domo Tactical Communications specializes in mesh networks that comprise of multiple antennas that stream data between devices across a network that is self-forming and self-healing.

Herndon, Virginia-based DTC touts its customer relationships as including 20 U.S. government agencies and members of the “Five Eyes” intelligence alliance.

Codan will pay an initial $88 million to purchase DTC with the possibility of an additional $16 million on top of that if certain milestones are achieved this year. Nearly 140 DTC employees will join Codan through the transaction.

DTC’s flagship MIMO Mesh product lines provide wireless transmission of video and other data applications to enterprises in the defense, intelligence, border control, first response and broadcast sectors.

“This is focused on providing total communications solutions by transitioning from a traditional voice only platform via the addition of data and video communication capabilities,” Codan chief executive Donald McGuirk said in a release. “This acquisition fills a technology gap and will be able to leverage Codan’s global distribution channels into the developing world.”

Codan established its U.S. military and security division in 2009

Private equity firm Marlin Equity Partners stood up DTC in 2016 through the acquisition of that business when it was the tactical communications and surveillance division of Cobham.

All parties expect to close the transaction in the second quarter.

Truist Securities acted as the exclusive financial adviser to DTC, while Baird acted in the same capacity for Codan.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also connect with him on LinkedIn.

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