TransDigm Group (NYSE:TDG) has entered into a definitive agreement to acquire Stellant Systems for approximately $960 million in cash, marking a significant expansion of its highly engineered aerospace and defense component portfolio.
The purchase price includes tax benefits expected to be realized by TransDigm.
Stellant, a portfolio company of private equity firm Arlington Capital Partners, specializes in the design and manufacture of high-power microwave and radio frequency (RF) amplification products.
Its technology, which includes vacuum electron devices and solid-state power amplifiers, is critical to radar, electronic warfare, and secure satellite communications.
Headquartered in Torrance, California, Stellant is projected to generate roughly $300 million in revenue for the calendar year ending December 31, 2025.
The deal perfectly aligns with TransDigm’s long-standing strategy of acquiring niche, proprietary businesses with high barriers to entry.
Approximately 50% of Stellant’s revenue is derived from aftermarket sales—parts and services required throughout the decades-long lifecycle of military and commercial platforms—while nearly all its revenue comes from proprietary products.