Delta Information Systems, Inc. as part of its Corporate Strategic Plan has developed a comprehensive Merger and Acquisition (M&A) strategy aimed at fostering sustained growth, enhancing market presence, better serving our customer base, and driving innovation within our industry.
Our Objective
The objective of our M&A initiative is to capitalize on emerging opportunities, strengthen our competitive position, and deliver increased value to our stakeholders. Our goal is to build a foundation of strategically related business units in growing markets. We do not acquire businesses solely for unrelated revenue growth. On the contrary, we acquire businesses that strengthen our core product offerings or technology, add new product lines to our existing markets or extend our product lines into related markets. Our acquired businesses must provide synergy with our existing business units so that we may take advantage of shared technology, sales, marketing and infrastructure in order to maximize the benefit and growth of the company and our existing business units. Our goal is for the whole to be greater than the sum of the parts.
Our Acquisition Interests
Our ideal acquisition targets are companies that are founder or family-owned. We provide a market for owners looking to retire or capitalize on their business. We are also interested in Private Equity or Venture Capital exits or corporate divestitures of related businesses. We typically look for companies having revenue in the $5M to $15M range and an adjusted EBITDA of 10-20%. However, larger or smaller companies in the Aerospace and Defense markets are of interest. We have also acquired distressed companies if they meet our objectives and have a path to profitability.
Our Strategy
Founders and owners pour their life’s work into building a successful business and come to see their employees as family. On leaving the business, they often have a desire to preserve that legacy and take care of their people. They come to us to acquire their businesses because they know we have a track record of doing just that. We do not pack up and move companies, have mass lay-offs, chop up and sell off the businesses. We also support owner/founder transitions to employee for those who would like to stay on in some capacity with the company as it grows.
We are interested in your company because we see the possibilities of synergy with our other businesses. You have built a successful business that has excellent market recognition and customer loyalty. Our goal is to continue and build on that achievement. We do not come in with the intention of making big changes or scrapping what you have built. Our goal is to provide support and to grow the business while exploiting synergies with our existing businesses.
We provide financial stability and resources such as support for information technology and cybersecurity, accounting and finance, sales and marketing, and human resources. We have a strong management team with significant business experience, and we have very deep business development capability in our current and related markets.
Our Acquisition History
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Companies Acquired
Acroamatics
- Date: 10/2013
- Full Company Name: Acroamatics, Inc.
- Primary Business: Telemetry Data Processing Systems
- Structure: 100% Stock Purchase
- Status: Operating within our DTS Group
Ampex Data Systems
- Date: 10/2014
- Full Company Name: Ampex Data Systems Corporation (ADSC)
- Primary Business: Rugged Airborne Solid State Data Processing and Recording Systems
- Structure: 100% Stock Purchase
- Status: Operating within our DMS Group
Wideband Systems
- Date: 08/2021
- Full Company Name: Wideband Systems, Inc. (WSI)
- Primary Business: RF, IF and Baseband Signal Recorders
- Structure: 100% Stock Purchase
- Status: Operating within our DTS Group
TCS
- Date: 02/2023
- Full Company Name: Telemetry and Communications Systems, Inc. (TCS)
- Primary Business: Tracking Antenna Systems
- Structure: 100% Stock Purchase
- Status: Operating within our DTS Group
The Benefit to You!
We understand the emotional impact that selling a business may have.
Unlike selling to a large business, private equity group or venture capital firm, selling to Delta preserves your legacy and values your employees and customers and can offer numerous benefits for you, your business and ours. Here are some key advantages to consider:
Your Legacy
You may have built your business from the ground up or run a business that you put your heart and soul into. Your employees are like family who have helped you through the good times and the tough times. You are proud of what you have accomplished and would like to see it continue. We value the legacy of your business, the knowledge of your employees, and the loyalty of your customers. We typically do not lay off employees nor do we move the company. We do not chop up the assets and sell them off. This is not just a financial transaction; it’s a strategic decision that can promote the success and positive reputation of the company you’ve built and ensures that the core principles and mission of your company remain intact.
Your Customers
You have worked hard to build up your brand and customer loyalty. You take pride in helping them solve problems and rejoice in their success. You have worked arm-in-arm helping them solve their most challenging problems. We appreciate the market recognition and customer loyalty that you have developed over the years and expect to maintain the company name and identity. We, too, are focused on providing excellent value for our customers. This is achieved not only by providing world-class products, but also by providing fanatical customer support. The success of our customer’s mission is paramount to our success.
Your Employees
Delta’s commitment to the existing workforce preserves institutional knowledge. Retaining personnel who understand the business intricacies helps maintain operational excellence. We understand that moving the facility or consolidating operations will work against retaining that knowledge. This commitment to job security can contribute to a more stable and motivated workforce. We invest heavily in employee benefits and in building a challenging and rewarding environment for our employees.
Our Support
Delta brings many well-defined support services to a new business. The new company can benefit from these services, as needed. We provide robust support services such as accounting, finance, human resources, marketing, and information technology. We support data backup/recovery and cybersecurity, physical security, telecommunications, web site development, email, and internet service. Using these services simplifies some of the more time-consuming functions of operating a company.
Our Management
We have significant business, operations and technical management experience in the aerospace and defense industry. This management team consists of not only corporate level managers, but also unique management skills within each of our business units. We work to identify and implement best practices across our companies. This management team is available to assist with problem solving, strategy development and scaling the business.
Our Finances
Delta is a financially stable company. Having been founded in 1977, Delta has successfully weathered many difficult global and local economic cycles to create a company which has a strong, conservative financial mindset. We also have a very strong partnership with our primary bankers as well as relationships with other financing sources. We have the ability to put together the necessary financing package for ongoing acquisitions. We have high ethical standards and strive to negotiate win-win deals.
Next Steps
If an acquisition of your business is of interest, the first step is a phone call. Please reach out to Gary Thom +1-215-657-5270 x123 or gthom@delta-info.com to discuss your company and how it might fit into the Delta family. If there is interest on both sides, we will send a Non-Disclosure Agreement for signature so that we can share more detailed information.
