SAN DIEGO, California – November 16, 2010 – Cubic Corporation (NYSE: CUB) today announced it has entered into an agreement to acquire Abraxas Corporation, a Herndon, Virginia-based company that provides risk mitigation and subject matter and operational expertise for national security, law enforcement and homeland security clients. The all-cash transaction has a value of approximately $124 million and will be funded from Cubic’s existing cash resources. The acquisition is expected to close in December 2010, subject to finalization of required consents and regulatory approval.
Abraxas will become a wholly owned subsidiary of Cubic Corporation and will operate under the leadership of Rodney Smith, President. Abraxas and its more than 280 highly skilled and experienced operational and technical experts will become part of Cubic’s Mission Support Services segment, adding to Cubic’s current knowledge base in information operations, cyber security and analysis.
“Abraxas will be the cornerstone of an expanded Cubic presence in the national security and cyber security sectors,” said John D. Thomas, Vice President of Finance and Corporate Development for Cubic Corporation. “In 2009, it had revenues of approximately $60 million and Cubic expects this to be accretive to earnings.”
“Abraxas is recognized for its record of unmatched experience and achievement in support of the national security community,” said Rodney Smith, President. “We see many synergies associated with Cubic’s breadth of technologies and service offerings, and expect to further expand our business through these combined resources.” Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. Cubic Transportation Systems is the world’s leading provider of automated fare collection systems and services for public transit authorities. For more information about Cubic, see the company's Web site at www.cubic.com.