PAE to Acquire Metis Solutions, Expanding and Differentiating Its Intelligence Community and National Security Portfolio - Seite 2

Strategic and Financial Benefits of the Acquisition

• Breadth of Contract Vehicles: The transaction brings more than eight strategic indefinite delivery, indefinite quantity contract vehicles, representing more than $60 billion of ceiling value that is expected to improve PAE’s business development pipeline in terms of number, size and win-rate percentage of opportunities.
• Broadens Offerings and Capabilities: Expands and builds scale in PAE’s intelligence analysis, training and program support business areas. These market areas are all well-funded by the U.S. government and our allied nations.
• Expands Whitespace Opportunity: Strategically positions PAE with new customers across the intelligence and defense communities.
• Attractive Financial Profile: Metis’ current financial profile, coupled with expected cost synergies, is expected to be accretive to organic revenue growth, adjusted EBITDA margins and free cash flow per share.
  

Financing and Approvals

The transaction has been unanimously approved by the boards of directors of both PAE and Metis. It is expected to close this quarter. PAE expects to fund the purchase price of approximately $92 million with cash on hand and utilization of its delayed draw term loan.

PAE is reiterating its fiscal year 2020 financial outlook provided on November 5^th, 2020. The 2020 financial outlook does not incorporate anticipated financial results of CENTRA or Metis.

Advisors

Crowell & Moring LLP acted as legal advisor to PAE in connection with the transaction.

Miles & Stockbridge P.C. acted as legal advisor and Raymond James & Associates, Inc. acted as financial advisor to Metis in connection with the transaction.

Conference Call and Webcast

PAE will host a conference call and webcast, November 16, 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.

Interested parties are invited to join the webcast from the PAE Investor Relations website. Due to the COVID-19 pandemic, teleconference providers globally are experiencing significant increases in conference call volume. As such, PAE recommends that parties participate by joining the webcast. Alternatively, if the webcast is not practical, attendees may listen to the conference call by dialing [phone] and entering conference ID 2168537. The international dial-in access number is [phone].