Innovative Solutions & Support, Inc. Announces Acquisition of Several Honeywell Product Lines
July 10 2023 - 8:30AM
Business Wire
Acquisition expected to be accretive in
fiscal year 2024 with opportunity to expand
post-integration
New Bank Facility Secured
Innovative Solutions & Support, Inc. ("IS&S" or the
"Company") (NASDAQ: ISSC) today announced that it has entered into
an exclusive license and acquired key assets for certain Inertial,
Communication and Navigation product lines from Honeywell
International, Inc..
Shahram Askarpour, Chief Executive Officer, said, "We are
pleased to announce the exclusive licensing of these product lines
from Honeywell Aerospace. This is a unique opportunity that
enhances our current offerings in the Air Transport, Military and
Business Aviation markets. In addition, there are potential cost
synergies from leveraging our skilled engineering team and better
utilizing existing operational capacity in Exton. We also believe
this agreement can help to accelerate growth of the IS&S
franchise by enhancing our global reputation for delivering some of
the industry’s best price-for-performance value propositions.”
Under the asset purchase and license agreement, IS&S will
license the exclusive Intellectual Property rights to manufacture,
upgrade and repair certain Honeywell Inertial, Communication and
Navigation products. The purchased assets include existing
inventory as well as test, tooling and other equipment required to
manufacture, repair, and upgrade the products.
Mike Linacre, Chief Financial Officer, added, “These product
lines have attractive margin profile characteristics that are an
essential element of our strategy. Consequently, once they’ve been
integrated into our operations, we expect the transaction to
materially contribute to our revenues and EBITDA. We also expect
the resulting EPS to be accretive in fiscal 2024, with the
potential for additional net income increases in future years from
various synergies.
Coincident with this acquisition, IS&S has secured bank
facilities to maintain ample liquidity for ongoing operations and
potential future acquisitions. These facilities and cash on hand
were used to fund the total purchase price for the
transaction.”
Conference Call
The Company will be hosting a conference call on Thursday July
13, 2023 at 10:00AM ET to discuss the acquisition. Please use the
following dial-in number to register your name and company
affiliation for the conference call: 1-844-739-3798 and ask to join
the Innovative Solutions & Support call. The call will also be
carried live on the following web site:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=15w2Z9bp
About Innovative Solutions & Support, Inc.
Headquartered in Exton, Pa., Innovative Solutions & Support,
Inc. (www.innovative-ss.com) is a systems integrator that designs
and manufactures flight guidance and cockpit display systems for
Original Equipment Manufacturers (OEMs) and retrofit applications.
The company supplies integrated Flight Management Systems (FMS),
Auto-Throttle Systems and advanced GPS receivers for precision low
carbon footprint navigation.
In addition to the historical information contained herein, this
press release contains “forward-looking statements” within the
meaning of, and intended to be covered by, the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are based on management’s current
expectations and beliefs concerning future developments and their
potential effects on the Company including, without limitation,
statements about future revenue, financial performance and
profitability, future business opportunities, and the impact of the
Honeywell asset acquisition and other acquisitions. Forward-looking
statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements
speak only as of the date they are made. Because forward-looking
statements are subject to assumptions, risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause results to differ materially from those expressed or implied
by such forward-looking statements include, but are not limited to,
the Company’s ability to efficiently integrate acquisitions,
including the Honeywell asset acquisition, into its operations; a
reduction in anticipated orders; an economic downturn; changes in
the competitive marketplace and/or customer requirements; an
inability to perform customer contracts at anticipated cost levels;
and other factors that generally affect the economic and business
environments in which the Company operates. Such factors are
detailed in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2022, and subsequent reports filed with the
Securities and Exchange Commission. Many of the factors that will
determine the Company’s future results are beyond the ability of
management to control or predict. Readers should not place undue
reliance on forward-looking statements. The Company undertakes no
obligation to revise or update any forward-looking statements, or
to make any other forward-looking statements, whether as a result
of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230710069355/en/
Mike Linacre – CFO 610-646-9800 X550
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