PE firm Veritas Capital to buy CPI International for $525 million

Veritas Capital, a defense industry focused private-equity firm today agreed to acquire defense systems manufacturer CPI International Inc, for $525 million.

This is the third acquisition by New York-based Veritas Capital in the past two months.

It acquired the illumination and detection solutions (IDS) business of PerkinElmer Inc for $500 million in September and the risk and resource management business Enterprise Integration Group (EIG) of Lockheed Martin Corporation, the world's largest defense company, for $815 million last month. (See: PerkinElmer to sell lighting and detection business to Veritas Capital for $500 mln / Lockheed Martin to sell resource management unit to Veritas Capital for $815 mln)

Palo Alto, California-based CPI is a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications.

It develops, manufactures and distributes products used to generate, amplify, transmit and receive high-power/high-frequency microwave and radio frequency signals and / or provide power and control for various applications.  

End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic counter-measures; transmission and amplification of voice, data and video signals for broadcasting, internet and other types of commercial and military communications.