TransDigm Group announced a definitive agreement to acquire Stellant Systems, Inc. for approximately $960 million in cash, including certain tax benefits. The deal adds a company that generates about $300 million in annual revenue, with roughly 50% of that coming from aftermarket sales, to TransDigm’s portfolio of 95 acquired businesses.
Stellant Systems, formed in October 2021 from L3Harris Technologies’ Electron Devices and Narda Microwave-West divisions, specializes in high‑power traveling‑wave tubes, microwave power modules, and related subsystems for aerospace and defense. The company employs around 950–1,100 people across four domestic manufacturing sites and serves a broad range of commercial and military platforms, positioning it as the only U.S. supplier of space‑qualified traveling‑wave tubes and amplifiers.
TransDigm’s recent quarterly results underscore the strategic fit of the acquisition. In fiscal 2024, the company reported $2.185 billion in revenue, up 18% year‑over‑year, and maintained a high operating margin of roughly 40–50% across its defense (40%), commercial OEM (28%), and commercial aftermarket (32%) segments. The addition of Stellant’s high‑power RF and microwave expertise expands TransDigm’s presence in a niche market that complements its existing portfolio of highly engineered, proprietary aerospace components.
Mike Lisman, TransDigm’s CEO, said the acquisition “fits well with our long‑term strategy of acquiring highly engineered, proprietary aerospace businesses that deliver strong margin and recurring revenue.” The move is expected to be accretive to earnings and to reinforce TransDigm’s pricing power in the aftermarket‑heavy business model, while providing new growth opportunities in the rapidly evolving high‑frequency communications and radar markets.
The transaction represents a modest 1.3% of TransDigm’s market capitalization of approximately $74 billion, indicating a disciplined capital allocation that balances growth with shareholder value creation. By adding Stellant’s advanced technology and customer base, TransDigm strengthens its competitive moat in a sector where proprietary products and aftermarket support drive long‑term profitability.
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