Cybersecurity business of Sypris Electronics sold to Analog Devices
NORWOOD, Massachusetts. Officials at Analog Devices, Inc. announced that the company has acquired the Cyber Security Solutions (CSS) business of Sypris Electronics LLC., in Tampa, Florida, which is owned by Sypris Solutions in Louisville, Kentucky.
ADI bought the business for about $42 million, according to Sypris Solutions second quarter earnings release. It was an all-cash transaction and "structured as a purchase of assets, including intellectual property and know-how, and included a long-term agreement for Sypris to supply circuit card assemblies to ADI for certain CSS products." Proceeds from the sale are expected to be about $37.5 million and will be used to reduce debt and reinvest in the company going forward, according to the release. The transaction closed on Tuesday, August 16.
ADI is looking to enhance its aerospace and defense capabilities in secure radio communications platforms with the acquisition as well as bolster its portfolio of system hardware and software-based cryptographic technologies. Company officials says the new line of business will add a cybersecurity software and services business that will enable them to expand their offerings in multiple market segments such as Internet of Things (IoT), industrial, automotive, and more.
“The proceeds from the sale will be used to repay the company’s senior debt and will be available to reinvest in the business to support future growth initiatives," said Jeffrey T. Gill, President and Chief Executive Officer of Sypris Solutions in the release. "Going forward, Sypris Electronics will continue to be based in Tampa, Florida and will focus on building upon its core capabilities as a trusted manufacturer for customers such as Harris, Lockheed Martin, Northrop Grumman, Rockwell Collins, TE SubCom, and now Analog Devices.”
The CSS business provides secure communications equipment, identity authentication, key management and encryption services for various agencies and services of the U.S. government, as well as for foreign allies. The transaction included the intellectual property and know-how for SiOMetrics, Sypher, the Sypris Cyber Range, and the Data Systems product line. About 67 people, or 33 percent of the headcount employed by Sypris Electronics, will be moving to ADI, including personnel located in Tampa; Columbia, Maryland; West Lafayette, Indiana; and Copenhagen, Denmark, according to the earnings release from Sypris.
The CSS team will help form the center of ADI’s new Secure Technology Group (STG), to be led by John Walsh, former president of Sypris Electronics, LLC. “The combination of ADI and the CSS business provides the unique opportunity to ‘change the game’ in security at the cyber-physical layer," Walsh says.
“With this acquisition, we have accelerated our ability to offer our customers trust ‘from the sensor to the cloud’ through next-generation cyber-physical security solutions,” says Dick Meaney, ADI Senior Vice President, Industrial, Healthcare and Consumer Group. “The competencies and offerings of the CSS business are a great complement to our Internet of Things (IoT) solutions, as security increasingly becomes paramount to the success of IoT implementations.”
According to ConsumerEagle.com "Analog Devices, Inc. (NASDAQ:ADI) has risen 28.14 percent since January 13, 2016 and is uptrending. It has outperformed by 12.70 percent the S&P500."
Find more information on ADI's aerospace and defense business, visit http://www.analog.com/en/applications/markets/aerospace-and-defense-pavilion-home.html.
For more information on ADI's IoT business, visit http://www.analog.com/iot