PAE to Acquire CENTRA Technology, Expanding its Intelligence Community Support Portfolio - Seite 2

"This transaction will further enhance CENTRA’s capabilities and create new opportunities for our customers and employees," said Jack Barry, Chief Operating Officer of CENTRA Technology. “The customers, contracts and offerings of each business complement each other well and will be attractive for all stakeholders."

Strategic and Financial Benefits of the Acquisition

• Significantly Increases Addressable Market: Transaction increases PAE’s total addressable market by approximately $36 billion in annual spending; provides PAE the ability to actionably pursue several large contracts in new market segments.
• Broadens Service and Technology Offerings: Brings new, value-add service and technology offerings to the portfolio; including intelligence analysis, communication systems integration and research and development services.
• Expands Customer Footprint and Contract Vehicles: Adds new customers within the Intelligence Community and Departments of Defense and Homeland Security, in addition to providing access to several large contract vehicles.
• Provides Additional Stability to Financial Profile: CENTRA’s contract portfolio is highlighted by low levels of recompete risk coupled with several recent large new business wins that provide approximately $1 billion of backlog, or about 4x CY2020 revenue estimates.
• Adds Uniquely Qualified Employees to Workforce: Provides highly skilled and cleared professionals, including about 700 employees with Top Secret/Sensitive Compartmented Information clearances with subject matter expertise across a range of critical national security issues.
  

Financing and Approvals

The transaction has been unanimously approved by the boards of directors of both PAE and CENTRA and is expected to close in the fourth quarter of 2020, subject to regulatory approvals and customary closing conditions. PAE expects to fund the purchase price of approximately $208 million with cash on hand and utilization of its delayed draw term loan.

Advisors

Morgan, Lewis & Bockius LLP acted as legal advisor and Renaissance Strategic Advisors, LLC acted as strategic advisor to PAE in connection with the transaction.

Greenberg Traurig, LLP acted as legal advisor and Citizens Capital Markets, Inc. acted as financial advisor to CENTRA in connection with the transaction.

Conference Call and Webcast

PAE will host a conference call and webcast, October 26, 2020, at 8 a.m. ET. and will post an investor presentation to its website. Management will review details of the acquisition, followed by a question-and-answer session. Listeners and other interested parties will be able to access a presentation summarizing the transaction on the PAE Investor Relations website.