Quantic Electronics, a portfolio company of Arcline Investment Management, has acquired X-Microwave.
Arcline formed Quantic in January 2021 as a platform company to consolidate its investments in the electronics components sector and today is composed of Evans Capacitor, a Rhode Island-based designer and manufacturer of capacitors made from corrosion-resistant metals tantalum and ruthenium (acquired in November 2020); Ohmega Technologies, a California-based maker of thin-film electronic resistive materials (acquired in January 2021); TRM Microwave, a New Hampshire-based maker of radio frequency (RF) and microwave components, integrated assemblies and subsystems used in the military, space and commercial markets (acquired in January 2021); and BEI Precision Systems & Space Company, a maker of sensors used in space, land, air, and sea applications (acquired in August 2021 from J.F. Lehman & Company).
X-Microwave provides modular radio frequency and microwave (RFMW) components – including amplifiers, mixers, switches, and attenuators – that are used in wireless infrastructure, radar, navigation, transportation, quantum computing, medical devices, and test and measurement applications. Austin, Texas-based X-Microwave was founded in 2013 by CEO John Richardson and CTO Raymond Page.
“Rapid RF and microwave product development is increasingly important in today’s world,” said Mr. Richardson. “X-Microwave’s modular platform is already being adopted industry-wide to address this challenge but there is still a long way to go as we move higher in frequency and power.”
“We remain committed to developing a world-class group of specialty electronics manufacturers that make mission-critical products,” said Kevin Perhamus, the CEO of Quantic. “The addition of X-Microwave and its unique business model nicely complements our growing RFMW technology portfolio.”
Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials. In February 2021, Arcline closed its second fund, Arcline Capital Partners II LP, with total capital commitments of $2.75 billion. Arcline was founded in September 2018 and has offices in San Francisco and New York.
The acquisition of X-Microwave by Quantic was backed by an existing first-lien term loan and a first-lien delayed-draw term loan that Quantic secured in August 2021 when it acquired BEI Precision. Chicago-headquartered Adams Street is the administrative agent, joint lead arranger, and joint bookrunner on these facilities with Boston-headquartered Evolution Credit Partners participating as a key lender.
Duff & Phelps was the financial advisor to Quantic on this transaction.
© 2021 Private Equity Professional | September 1, 2021
