Transactions: Argon ST

Argon ST, a leading provider of C4ISR, cyber and intelligence systems and sensors to the DoD, agreed to be acquired by The Boeing Company in an all-cash transaction following a comprehensive review of the company’s strategic alternatives. Argon represented Boeing’s largest defense-related acquisition since the purchase of Hughes Satellite Systems in 2000.  The addition of Argon bolstered Boeing’s capabilities in the areas of SIGINT (Signals Intelligence), ESM (Electronic Support Measures), EW (Electronic Warfare) and IO (Information Operations). The purchase price of $777 million, a 61% premium to the unaffected price, equated to a transaction multiple of approximately 10.8x forward EBITDA.