Raven Industries, Inc. [RAVN], a provider of aerostats for scientific and security applications, yesterday said it has agreed to acquire Vista Research, Inc., a developer of surveillance technology that enhances the effectiveness of radars.
Raven said it is paying $12 million in cash for Vista Research with a potential $38.5 million more in benchmark and earn-out provisions over the next seven years. The deal is expected to be completed this month.
For Raven’s Aerostar division, which Vista Research will become part of, the pending deal marks an expansion of its product capabilities. Aerostar makes the aerostat platforms and relies on other parties for the payloads.
Raven said that the pending acquisition will enable it to offer more end-to-end aerosat systems and gain access to a broader customer base. Raven said the deal will immediately allow it to enhance its tethered aerostat security solutions and in the longer-term will help meet growing global demand for low-cost detection and tracking systems used by government and law enforcement agencies.
“Raven is excited to acquire a highly regarded developer of smart radar and sensing processors, including an extremely talented team,” Lon Stroschein, vice president and general manager of Raven Aerostar, said in a statement. “Together we will bring new innovations for detecting and tracking small objects over the land, on the water and in the air. Our solutions can replace or enhance traditional, high-cost radar systems used today.”
Raven has worked with Vista Research for the past 18 months. Vista Research, which has about 40 employees, did not use a financial adviser on the deal.