SIOUX FALLS, S.D., Jan. 3, 2012 (GLOBE NEWSWIRE) -- Raven
Industries, Inc. (Nasdaq:RAVN) today announced that its
Aerostar division has signed a stock purchase agreement to
acquire Vista Research, Inc., a leading provider of
surveillance systems that enhance the effectiveness of radars
using sophisticated algorithms. Vista's smart sensing
radar systems (SSRS) are employed in a host of advanced
detection and tracking applications, including wide-area
surveillance for the border patrol and the military. This
acquisition will immediately allow Raven Aerostar to enhance
its tethered aerostat security solutions. Longer-term, the
company is positioned to meet growing global demand for
low-cost detection and tracking systems used by government
and law enforcement agencies. Under the terms of the
agreement, Raven will acquire Vista Research for an initial
cash purchase price of approximately $12 million, with up to
$38.5 million in additional benchmark and earn-out payments
over the next seven years. The transaction is expected to
close in January and is subject to customary closing
conditions.
"Raven is excited to acquire a highly regarded developer
of smart radar and sensing processors, including an extremely
talented team," said Lon Stroschein, Aerostar division
vice president and general manager. "Together we will
bring new innovations for detecting and tracking small
objects over the land, on the water and in the air. Our
solutions can replace or enhance traditional, high-cost radar
systems used today. Our unique proposition is improved
security in all types of weather at a lower total cost of
ownership."
"Vista Research has pioneered innovative detection and
tracking processing systems for more than 25 years, and we
have developed smart radar surveillance processors that can
help identify threats to critical assets," said Joe
Maresca, CEO and co- founder of Vista Research, Inc.
"Today, we join forces with Raven Industries, which
shares a common vision for peace and stability through
innovation and high quality products, and together we look
forward to extending our presence in the global radar
surveillance market. We are excited about the opportunity to
leverage Raven's world-class organization to deliver new
feature-rich detection and tracking solutions to
customers."
"After collaborating with Vista Research for the past 18
months, we are confident this transaction meets all of our
acquisition criteria for growth and creating shareholder
value," said Daniel A. Rykhus, Raven's president
and chief executive officer. "First and foremost, we are
acquiring a highly-engineered niche product with a unique
market position. Vista's radar processing technology
enables our Aerostar Division to offer more competitive
end-to-end aerostat systems, as well as gain access to a much
broader customer base. We also see opportunities to integrate
Vista's technology with our Marine navigation products
for enhanced port security. Importantly, Raven has a proven
approach for commercializing acquired technologies and
leveraging our strengths in manufacturing, market
development, sales and customer service.
"Vista's current office locations and engineering
resources will continue to support their existing government
contracts,
including several recent orders for radar systems. Raven will
provide a full suite of engineering services to support new
product introductions and quality manufacturing through our
Electronic Systems Division. With high-level security
clearances and extensive contacts, Vista creates a new path
for Raven to pursue next-generation surveillance and security
solutions."
Rykhus concluded, "The ability to sustain our growth
requires a constant search for new markets. This is one of
those unique opportunities in which a breakthrough technology
can be another catalyst driving future growth at Raven. We
expect that this acquisition will be additive to our earnings
in the course of the coming year. More importantly, we
believe this acquisition meets our goal of allocating capital
to generate attractive returns on investment with increasing
cash flows."
Since 1956, Raven Industries has designed and manufactured
high-quality, high-value technical products. Raven is
publicly traded on NASDAQ (RAVN) and has earned an
international reputation for innovation, product quality,
high performance and unmatched service. With strengths in
engineering, manufacturing, and technological innovation,
Raven serves the precision agriculture, high performance
specialty films, aerospace, and electronic manufacturing
services markets. Aerostar International, Inc. is a wholly
owned subsidiary of Raven Industries, Inc.
The Raven Industries, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9627
Based in Arlington, VA, privately-held Vista Research, Inc., has a national reputation for quality work in the development of systems incorporating remote sensing and signal processing techniques. Vista's Smart Sensing Radar Systems (SSRS) provide a reliable, cost-effective solution for earlier detection of defined targets and their movement over land and water.
Forward-Looking Statements
This news release contains "forward-looking
statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including
statements regarding the expectations, beliefs, intentions or
strategies regarding the future. Without limiting the
foregoing, the words "anticipates,"
"believes," "expects,"
"intends," "may," "plans," and
similar expressions are intended to identify forward-looking
statements. Th company intends that all forward-looking
statements be subject to the safe harbor provisions of the
Private Securities Litigation Reform Act. Although management
believes that the expectations reflected in forwar-dlooking
statements are based on reasonable assumptions, there is no
assurance these assumptions are correct or that these
expectations will be
achieved. Assumptions involve important risks and
uncertainties that could significantly affect results in the
future. These ris and uncertainties include, but are not
limited to, satisfaction of closing conditions, integration
of the businesses, commercialization of the product line,
changes in competition, raw material availability, technology
or relationships with the company's largest
customers-any of which could adversely affect any of the
company's product lines-as well as other risks described
in the company's 10-K under Item 1A. This list is not
exhaustive, and the company does not have an obligation to
revise any forward-looking statements to reflect events or
circumstances after the date these statements are made.
CONTACT: AT THE COMPANY: Tom Iacarella
Vice President & CFO (605) 336-2750
AT FINANCIAL RELATIONS BOARD: Scott Eckstein
Analyst/Media Inquiries
(212) 827-3766
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