Project Description

EDO Corporation (NYSE:EDO) and privately held AIL Technologies, Inc. of Deer Park, New York, have signed a definitive agreement to merge. The transaction will create an integrated defense and aerospace technology company with annualized revenue and EBITDA of approximately $240 million and $27 million, respectively.

EDO designs and manufactures advanced mechanical, electronic and electro-optical systems and engineered materials for domestic and international defense and industrial markets. AIL manufactures a broad array of aircraft, marine and satellite antennas including antennas for Boeing’s entire line of commercial aircraft. AIL has an installed base of electronic systems products of approximately $5.0 billion, including the defensive avionics on the B-1B bomber and the stand-off jamming systems on the EA-6B.

Under the agreement, all AIL outstanding common and preferred shares will be exchanged for EDO shares in addition to the assumption of $35.2 million in AIL debt and a cash payment of $13.1 million to AIL shareholders. The transaction is valued at approximately $87 million. Philpott Ball & Werner served as advisor to EDO Corporation.