Transactions

April 8 2019

KippsDeSanto & Co. advises Systron Donner Inertial, Inc. on its Sale to Investment Affiliates of Resilience Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Systron Donner Inertial, Inc. (“SDI” or the “Company”), a portfolio company of The Carlyle Group, PAI Partners, and Schneider Electric, to investment affiliates of Resilience Capital Partners.

Headquartered in Concord, CA, SDI is a leader in the inertial sensors industry, with considerable domain expertise in the design and development of high performance, precision, quartz microelectromechanical systems (“QMEMS”). SDI’s QMEMS are utilized in guidance, navigation, control, and stabilization applications for various aircraft, unmanned autonomous vehicles, land vehicles, and precision guided weapons. QMEMS provides clear, continuously improving size, weight, power and cost (“SWaP-C”) advantages over alternative technologies. The Company’s product portfolio, anchored by its flagship SDI500 inertial sensor, includes a range of highly accurate, reliable, and resilient instruments used in many notable strategic platforms, including the Boeing 777x, MK48 / MK54 torpedoes, business jets, and military aviation and guided munitions programs.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

• Companies holding single-source status on well-funded, mission-critical Programs of Record and enduring commercial platforms create compelling strategic interest as acquisition targets

• Significant value continues to be derived from companies with deeply-embedded relationships with key aerospace and defense customers, especially those aligned with favorable budget forecasts

• Private equity buyers remain actively focused on acquiring high-end design and manufacturing capabilities built on a foundation of proprietary processes and trade secrets

LEAD INVESTMENT BANKERS

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Karl M. Schmidt

Contact Karl
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Brian T. Tunney

Contact Brian

KippsDeSanto & Co. is pleased to announce the sale of its client, Systron Donner Inertial, Inc. (“SDI” or the “Company”), a portfolio company of The Carlyle Group, PAI Partners, and Schneider Electric, to investment affiliates of Resilience Capital Partners.

Headquartered in Concord, CA, SDI is a leader in the inertial sensors industry, with considerable domain expertise in the design and development of high performance, precision, quartz microelectromechanical systems (“QMEMS”). SDI’s QMEMS are utilized in guidance, navigation, control, and stabilization applications for various aircraft, unmanned autonomous vehicles, land vehicles, and precision guided weapons. QMEMS provides clear, continuously improving size, weight, power and cost (“SWaP-C”) advantages over alternative technologies. The Company’s product portfolio, anchored by its flagship SDI500 inertial sensor, includes a range of highly accurate, reliable, and resilient instruments used in many notable strategic platforms, including the Boeing 777x, MK48 / MK54 torpedoes, business jets, and military aviation and guided munitions programs.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

• Companies holding single-source status on well-funded, mission-critical Programs of Record and enduring commercial platforms create compelling strategic interest as acquisition targets

• Significant value continues to be derived from companies with deeply-embedded relationships with key aerospace and defense customers, especially those aligned with favorable budget forecasts

• Private equity buyers remain actively focused on acquiring high-end design and manufacturing capabilities built on a foundation of proprietary processes and trade secrets

LEAD INVESTMENT BANKERS

banker-photo

Karl M. Schmidt

Contact Karl
banker-photo

Brian T. Tunney

Contact Brian