Transaction will unite industry leaders to create an emerging force in the aerospace and defense industry
Fairfield, New Jersey (November 8, 2024) Velocity One, a newly formed aerospace manufacturing holding company, announced today it has signed a merger agreement with EMCORE Corporation (Nasdaq: EMKR), a provider of inertial navigation solutions to the aerospace and defense industry. Under the agreement, EMCORE will become a wholly owned subsidiary of Velocity One. The purchase price of $3.10 per share in cash, backed by Charlesbank Capital Partners, a private investment firm with more than $22 billion of total assets, has been unanimously approved by the EMCORE board of directors.
Velocity One will now have three industry leaders operating under its wing. In addition to EMCORE, it will comprise Cartridge Actuated Devices, Inc. (“CAD”), a 50-year veteran designer and manufacturer of energetic devices, and Aerosphere Power, a manufacturer of power system solutions for commercial and military aerospace, military ground vehicles, and UAV applications.
“We are excited to bring our playbook to EMCORE, as well as decades of experience operating aerospace and defense manufacturing and engineering businesses and optimizing their efficiency and profitability. EMCORE has excellent technology and offers a large product portfolio. We believe this, combined with our industry experience and shared customer portfolio, puts EMCORE on a new trajectory for growth. With Charlesbank’s investment, EMCORE, CAD, and Aerosphere Power’s businesses can align and be poised for growth while focusing on our collective core philosophies.”
John Borduin, CEO of Velocity One
“We see a tremendous opportunity to bring together three leading aerospace manufacturing businesses to create a compelling new player in the market, and EMCORE’s highly engineered proprietary products will be key to driving the platform’s overall success. Velocity One’s talented and motivated management team has the industry expertise, entrepreneurial talent, and reputation necessary to drive meaningful growth at scale, and we remain excited to partner closely with them to execute our shared vision for the future of each business.”
Brandon White, Managing Director at Charlesbank
“This merger underscores our commitment to our domestic and international customer base, including strengthening relationships with and generating synergies across a range of high-priority U.S. and NATO defense programs and industrial partners served by all three companies. By combining our strengths with those of Velocity One, we believe EMCORE will be better positioned and resourced to address global customers’ evolving needs and deliver superior solutions. We look forward to the future as part of the Velocity One team.”
Matt Vargas, CEO of EMCORE
Advisors
Skyway Capital Markets, LLC and Launch Point Partners LLC are acting as buyside financial advisors to Velocity One. Foley & Lardner LLP is serving as legal counsel to Velocity One.
Craig-Hallum Capital Group LLC is acting as exclusive financial advisor to EMCORE, and Pillsbury Winthrop Shaw Pittman LLP is serving as legal counsel to EMCORE.
About Velocity One
As a newly formed aerospace and defense platform, Velocity One brings together EMCORE, Cartridge Actuated Devices, and Aerosphere Power, all committed to delivering cutting-edge solutions and exceptional performance. This strategic combination positions Velocity One as a global leader in aerospace and defense, enabling the company to capture new opportunities, strengthen its market position, and expand its shared customer base. Visit Velocity One at www.velocity-one.com.
About EMCORE
EMCORE Corporation is a leading provider of inertial navigation products for the aerospace and defense markets. EMCORE leverages industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, and Lithium Niobate chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its facilities in Budd Lake, NJ, Concord, CA, and Tinley Park, IL. EMCORE’s manufacturing facilities all maintain ISO 9001 quality management certification, and the company is AS9100 aerospace quality certified at its facilities in Budd Lake and Concord. For further information about EMCORE, please visit emcore.com.
About Charlesbank
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $22 billion of total assets. Charlesbank focuses on management-led buyouts, growth capital financings, opportunistic credit, and technology investments. The firm seeks to invest in companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.
Contacts
For Velocity One:
Julia McDowell
[email protected]
For EMCORE:
Tom Minichiello, Chief Financial Officer
[email protected]
For Charlesbank:
Ryan FitzGibbon / Alexa Ottenstein / Peter Gavaris
Prosek Partners
[email protected]