Movers and SHAKERS
Zenetex Acquisition Expands and Deepens Offerings
Vectrus Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offer facility and logistics services and information technology and network communications services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations and others.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
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Zenetex Acquisition. Monday evening, Vectrus announced it was acquiring Zenetex, accelerating its converged infrastructure strategy. Vectrus is paying $123 million, or $112 million, net, after $11 million of expected tax benefits, or approximately 8.4x 2020E adjusted EBITDA. The deal is expected to be accretive to VEC's adjusted diluted EPS and adjusted EBITDA margin. The deal is expected to close before the end of 2020.
Who is Zenetex? Zenetex is a leading provider of technical and strategic solutions focused on enabling mission readiness, performance, and enhanced protection for defense and national security clients globally. For 2020, the Company is expected to generate revenue in excess of $200 million and we estimate around $13 million of adjusted EBITDA. The Company is at the front end of significant new ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.