Ares Management has completed its $315 million take-private buyout of Global Defense Technology & Systems (NASDAQ: GTEC). Ares paid GTEC shareholders $24.25 in cash per share of common stock. GTEC provides mission-critical, technology-based systems, solutions and services for national security agencies and programs of the U.S. government. Following the acquisition, the company was renamed Sotera Defense Solutions.
Since the beginning of 2008, 78 PE investors have invested in 86 companies involved in the Aerospace & Defense industry, according to the PitchBook Platform. After steadily decreasing in recent years, deal activity in the industry finally appears to be picking up in 2011. With just a little over a quarter of the year over, 10 deals have already been completed, the equivalent of half of 2010's total deal count. Public-to-private buyouts, like the GTEC deal, have been relatively rare in the Aerospace & Defense industry with only 3 of the 90 deals completed since 2008 involving target companies that were public. Of the 78 PE investors recently active in the industry, the most active include Cerberus Capital Management, Metalmark Capital and Vance Street Capital, each with 4 deals apiece.