NEOTech acquires Virtex to expand defense manufacturing

Key Takeaways

• NEOTech acquires Virtex, a US-based electronic manufacturing services provider, to expand its defense manufacturing capabilities
• The combined company will operate 11 facilities with over 2,500 employees
• The acquisition strengthens NEOTech's position in complex, low-to-medium-volume, high-mix electronic manufacturing
• NEOTech will continue to invest in advanced manufacturing technologies, engineering expertise, and supply chain capabilities

Introduction to NEOTech and Virtex

NEOTech, a leading provider of electronic manufacturing services, has announced the acquisition of Virtex, a US-based company specializing in high-reliability electronic manufacturing services for the defense market. The acquisition aims to expand NEOTech's domestic manufacturing base, broaden its engineering and production capabilities, and enhance its support for defense customers.

Combined Operations and Capabilities

The combined company will operate 11 facilities across the United States, with a workforce of over 2,500 employees. Virtex operates five facilities, providing end-to-end electronics manufacturing solutions, including:

• Engineering and testing
• Supply chain management
• Printed circuit board assembly
• Cable and harness assembly
• Full-system integration
• Direct-order fulfillment
• Aftermarket support

Comparison of NEOTech and Virtex

Investment and Growth Plans

NEOTech will continue to invest in advanced manufacturing technologies, engineering expertise, quality systems, supply chain capabilities, and employee development. This investment will enable the company to strengthen its position in complex, low-to-medium-volume, high-mix electronic manufacturing and provide customers with a resilient supply chain.

Financial and Advisory Details

The acquisition was advised by Sheppard Mullin on legal M&A matters, Greenberg Traurig on legal financing matters, Virtas Partners on financial due diligence, and RSM on tax-related analysis. Acquisition financing was provided by a consortium of existing lenders, including PNC Bank, Crestline Investors, and Canyon Partners.

Bottom Line

The acquisition of Virtex by NEOTech marks a significant expansion of the company's defense manufacturing capabilities, strengthening its position in the electronic manufacturing services market. With a combined workforce of over 2,500 employees and 11 facilities, NEOTech is well-positioned to support defense customers across the full product lifecycle, from design and prototyping to production, fulfillment, and ongoing lifecycle support.