PAE signs off on divestiture before it goes public
PAE has found a buyer for the assets of its ISR business, in keeping with plans laid out as part of its deal to go public by merging with blank check company Gores Holding III.
Financial terms of the deal with American Aerospace Technologies Inc. announced Thursday were not disclosed.
AATI is picking up the assets that build and sell the Resolute Eagle unmanned aircraft. AATI is in the business of selling airborne intelligence and communication systems for operators in the energy and other critical infrastructure segments.
”The widely recognized capabilities and proficiency of the Resolute Eagle is a natural fit with our existing portfolio," David Yoel, founder and chief executive officer of AATI, said in a company statement.
Yoel added that he sees Resolute Eagle’s potential in the beyond line of sight applications for critical infrastructures.
“As we enter the era of unmanned commercial aviation, this acquisition gives us an expanded presence in the rapidly accelerating BVLOS UAS market,” he said.
Riva Ridge Capital Management is financing the transaction for AATI.
The sale of the ISR business was a condition of the deal between PAE and Gores Holding III. Once the deal with Gores closes, PAE will be a publicly-traded company.
Posted by Nick Wakeman on Dec 18, 2019 at 12:53 PM