Veritas Capital said Tuesday that it has agreed to acquire the embedded technology and systems business from General Electric Co. Financial terms weren’t announced. GE’s Embedded Systems business provides open architecture electronic systems for aerospace, defense, and industrial solutions. The business is headquartered in Huntsville, Alabama and employs about 700 people globally.
New York, NY – September 22, 2015 – Veritas Capital, a leading private equity firm, today announced that an affiliate of Veritas has signed a definitive agreement to acquire the embedded technology and systems business (“Embedded Systems” or the “Business”) from General Electric Company (“GE”) (NYSE: GE). Terms of the transaction were not disclosed.
GE’s Embedded Systems business is an industry-leading supplier of sophisticated, open architecture electronic systems for aerospace, defense, and industrial solutions, currently operating within GE Energy Management (Intelligent Platforms subdivision). The Embedded Systems’ broad product portfolio employs various highly engineered, patented and high-performance commercial computing technologies to address advanced size, weight and power challenges that are common to rapidly evolving aerospace, defense, and industrial applications and programs. These rugged products are designed to withstand harsh environments such as extreme temperature, high vibration and exposure to natural elements. The Business is headquartered in Huntsville, AL with five facilities globally, including three in North America and two in Europe, and has approximately 700 employees worldwide.
Mark Begor, President and CEO of GE Energy Management, said, “Veritas has a proven track record of growing similar businesses in the aerospace, defense and commercial industry segments. This is a great move for our employees, our customers, and the Business. Bernie Anger, currently General Manager of GE’s Intelligent Platforms business, will continue to lead the Business for Veritas.”
Hugh Evans, a Managing Partner of Veritas, said, “Acquiring GE’s Embedded Systems business is an exciting opportunity to partner with a leading provider of mission-critical technology solutions to both government and commercial markets. Guided by Bernie Anger and his exceptional leadership team, the Business is positioned to benefit from long-term market trends including shifts towards open architecture, interoperable systems, smarter purchasing initiatives, and technological modernization. We look forward to applying our substantial investing and operating expertise to support the continued growth of GE Embedded Systems.”
“Veritas brings deep experience investing in the defense market, a vast network of relationships in the government and commercial markets, and a track record of adding significant value to its portfolio companies. We are excited by the prospect of leveraging the firm’s expertise as we accelerate the growth of the Business,” said Bernie Anger, General Manager of GE’s Intelligent Platforms business.
The transaction is anticipated to close in the fourth quarter. Upon closing, GE’s Embedded Systems business will be renamed and operate as an independent company at its current headquarters in Huntsville, AL. Existing senior management will continue to lead the Business.
About GE’s Embedded Systems Business
GE’s Embedded Systems business is a leading, global provider of open architecture computing and electronic systems for aerospace, defense, and industrial solutions. The Business’ portfolio of commercial-off-the-shelf (“COTS”) products is based on high-performance, rugged computing technologies and custom designs for use in a wide array of applications and is designed to withstand harsh environments such as extreme temperature, high vibration and exposure to natural elements. Embedded Systems’ modular solutions are developed to upgrade and enhance the growing data, analytics, communications and sensor processing capabilities of its target applications. The Business is typically the sole-source supplier of such solutions.
About Veritas Capital
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services to government and commercial customers worldwide including those operating in aerospace & defense, healthcare, technology, national security, communications, energy and education. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.