AMETEK, Inc. [AME] on Monday said it has agreed to acquire Abaco Systems, Inc.
, a developer and supplier of embedded computing systems, for $1.4 billion in cash from the private equity firm Veritas Capital in a deal that expands its capabilities and exposure in aerospace and defense.
The transaction is expected to close in mid-2021 and is subject to regulatory approvals.
Abaco, which is based in Huntsville, Ala., has annual sales of about $325 million and about 750 employees. The company open architecture computing and electronic systems are used in aerospace, defense and specialized industrial markets.
AMETEK said the addition of Abaco will expand its aerospace and defense capabilities into a growing adjacent market area.
“Their market leading embedded computing solutions are ideally positioned across a number of attractive aerospace and defense platforms, further broadening our differentiated product offering serving these markets,” David Zapico, chairman and CEO of AMETEK, said in a statement.
Abaco’s systems are used in a number of applications including autonomy, avionics, electronic warfare, hypersonic, radar, sonar, test and simulation, and the sensor to action chain.
Once the deal closes, AMETEK said that Abaco will become a new division within its Electronic Instruments Group.