COM DEV International Ltd., Cambridge ON, global designer and manufacturer of space hardware and subsystems, has signed an agreement to acquire 100% of MESL Microwave Ltd. in a transaction that expands COM DEV’s market and product portfolios.
Headquartered in Edinburgh, Scotland, MESL Microwave Ltd. plays a significant role in the global microwave technology market, designing and manufacturing high-reliability components and subsystems for the radar, communications, defence and aerospace industries.
The transaction is a positive strategic step for COM DEV on several fronts. First, it builds on the Company’s core expertise in radio frequency ferrite equipment and microwave devices for satellites. Next, it adds skills, complementary capability and capacity to the Company’s current UK facilities to address a rapidly expanding global demand for these products. In particular, over the next decade, COM DEV is facing an unprecedented demand for high-power, high-speed ferrite material-based switching networks used in space-based earth-observation and telecommunications satellites, and this transaction establishes COM DEV as a dominant player in that market.
The acquisition of MESL Microwave also provides the firm with greater access to the aerospace market with microwave component products that are complementary to COM DEV’s product offering in the space market. This represents a step forward in COM DEV’s strategy to increase its participation in the aerospace market, and provides the opportunities to bring some of the aerospace technologies and manufacturing competence into the space domain. As COM DEV’s traditional space customers continue to push the boundaries, the Company is looking for approaches from other industries that will bring improvements in performance and schedule. MESL Microwave brings agility, knowledge and expertise in the aerospace market, which can be leveraged to gain efficiencies in the space business.
Finally, the additional capacity provided through this transaction will give the Company the capability to extend the geographic reach of its core products, progressing another of the Company’s stated strategic goals.
The investment being made now in MESL Microwave builds on COM DEV’s 30-year history of operating a significant space business in the United Kingdom. Rob Spurrett, president of COM DEV International Systems, said, “Cross-party support from within government for the UK’s Space Innovation and Growth Strategy, and the leadership of the UK Space Agency and Innovate UK have shown us that the UK is serious about exploiting the potential of the space industry for the long term. The UK is a great place to develop new technology thanks to the incentives that are available, and the UK’s increasing commitment to the European Space Agency and other international partnerships.”
Continuing, Spurrett said, “COM DEV has been in the UK for several decades, with over 80% of the products designed and manufactured in its UK operations being exported around the world.” Michael Pley, CEO of COM DEV International Ltd., commented on the transaction, “We are now moving to a new phase in UK operations. We have seen growth in revenue in our Aylesbury facility over recent years and are anticipating further substantial growth in this supportive environment. We are now wellplaced with a foothold close to the space hub in Harwell, England, and with this transaction now in the Scottish space cluster as well. We are here to build upon what we started almost 30 years ago.”
