Ricardo to expand US defence business with acquisition of Control Point Corporation
Share Purchase Agreement will see Control Point Corporation becoming a fully owned subsidiary of Ricardo Defense Systems
Acquisition will bring crucial skills in ‘Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance’ (C4ISR) systems engineering, cyber security, and the development of vehicle management systems
The acquisition, which is subject to regulatory approvals, will be funded from the existing bank facilities of Ricardo plc
Ricardo plc has announced today that it has signed a share purchase agreement to acquire the business, operating assets and employees engaged in the business of Control Point Corporation (CPC). The acquisition, subject to regulatory approvals including that of the Committee on Foreign Investment in the United States, is expected to be completed by 1st September. The total cash consideration is $10.2 million, subject to any adjustment to reflect normalised levels of working capital, the achievement of certain financial performance targets and the retention of specific individuals. Ricardo will acquire the whole of the issued share capital of Control Point Corporation, which will become part of Detroit-based Ricardo Defense Systems LLC (RDS).
Ricardo has a long tradition in the international defence sector, particularly focused upon the design, engineering, manufacture, and through-life upgrade of land-based military vehicles for UK armed forces, as well as those of other friendly nations in all parts of the world. The company’s North American defence business operates under RDS, a Ricardo subsidiary structured under a Special Security Agreement, facilitating opportunities for collaboration with US manufacturers and government agencies on defence-related vehicle technology development and engineering projects.
The acquisition of CPC is central to the growth of RDS’s defence business, significantly expanding the range of opportunities that it can pursue. New capabilities available through this acquisition include expanded vehicle engineering capabilities, expertise in distributed software-based systems and fleet management technologies. Crucially, CPC also brings expertise in ‘Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance’ (C4ISR) systems, and in the integration of electronic systems targeted for combat environments. CPC’s proven ability to develop highly complex enterprise systems also strengthens Ricardo’s offerings across other target industries such as transportation, energy, and resource management with an expanded range of software-based solutions. Founded in 1995, CPC has a staff of over 90 engineers and specialists located at offices in Michigan, California, Maryland and Alabama.
“I’m delighted to be able to announce today’s share purchase agreement with Control Point Corporation,” commented Ricardo plc CEO Dave Shemmans. “CPC’s proven software development capability and its 20 years of electronic system integration experience are highly complementary to Ricardo’s defence vehicle engineering capabilities. The enlarged Ricardo Defense Systems business will be able to compete in new segments of the market and serve our customers with an expanding portfolio of services and solutions. I look forward to welcoming CPC’s employees to the global Ricardo team.”
“The acquisition of CPC offers very valuable synergies with our defense business in the United States and international markets,” said Chet Gryczan, president of Ricardo Defense Systems. “As a combined team, we now have an arguably unparalleled range of expertise that will enable us to deliver all aspects of system engineering and integration, software and product development, and full product lifecycle support for our customers. I look forward to joining with my colleagues at CPC to form an exciting new and expanded Ricardo Defense Systems business.”
“The combination of CPC’s capabilities with those of Ricardo will provide a unique offering to our customers,” commented Ed Marcarelli, president and CFO, Control Point Corporation. “Together, we will leverage Ricardo’s full-system trade software and subject matter experts in mobility system designs, to produce high performance combat vehicle architectures and to build systems that predict and isolate failures to reduce maintenance costs. I believe that the benefits of this combination of skills and expertise will be of significant value to our customers – as well as to the service men and women of the armed forces that use the products that we create.”