NEOTech acquires Virtex to expand defense manufacturing

Key Takeaways

• NEOTech acquires Virtex, a US-based electronic manufacturing services provider, to expand its defense manufacturing capabilities
• The combined company will operate 11 facilities with over 2,500 employees
• The acquisition broadens NEOTech's engineering and production capabilities, enhancing its support for defense customers
• NEOTech will invest in advanced manufacturing technologies, engineering expertise, and supply chain capabilities

Introduction to NEOTech and Virtex Acquisition

NEOTech, a leading provider of electronic manufacturing services, has announced the acquisition of Virtex, a US-based company specializing in high-reliability electronic manufacturing services for the defense market. The terms of the transaction have not been disclosed.

Expanded Capabilities and Services

Virtex operates five facilities across the United States, offering a range of services including:

• Engineering and testing
• Supply chain management
• Printed circuit board assembly
• Cable and harness assembly
• Full-system integration
• Direct-order fulfillment
• Aftermarket support
  The combined company will have a significant presence in the US defense manufacturing market, with 11 facilities and over 2,500 employees.

Comparison of NEOTech and Virtex

Investment and Growth Plans

NEOTech plans to invest in advanced manufacturing technologies, engineering expertise, quality systems, supply chain capabilities, and employee development across the combined organization. This investment will enhance the company's position in complex, low-to-medium-volume, high-mix electronic manufacturing and provide customers with a resilient supply chain.

Financial and Advisory Details

The acquisition was advised by several firms, including Sheppard Mullin, Greenberg Traurig, and RSM. Financing was provided by a consortium of lenders, including PNC Bank, Crestline Investors, and Canyon Partners. Lincoln International served as financial advisor to Virtex, while Alston & Bird served as M&A counsel.

Bottom Line

The acquisition of Virtex by NEOTech is a strategic move to expand its defense manufacturing capabilities and enhance its support for defense customers. With a combined presence of 11 facilities and over 2,500 employees, the company is well-positioned to provide high-reliability electronic manufacturing services to the US defense market. As NEOTech continues to invest in advanced manufacturing technologies and engineering expertise, it is likely to remain a leading player in the electronic manufacturing services industry.