Mobix Labs Inc., the Irvine-based chipmaker and connectivity startup, aims to expand its market reach with the planned acquisition of Spacecraft Components Corp. in a deal worth up to $24 million.
“It’s kind of a coup acquisition for us,” Mobix Labs President and CFO Keyvan Samini told the Business Journal.
North Las Vegas-based Spacecraft makes high-precision, mission-critical components for aerospace, defense and commercial applications, including the U.S. Army’s Patriot Missile.
It makes components for a wide array of companies, including Boeing, the rail systems in New York and the BART public transit systems in the Bay Area, according to Samini.
Spacecraft also supplies key components for railcar systems in major metropolitan areas such as Chicago and New York.
“We are in all of the Virginia Class submarines,” Samini added.
The planned acquisition is expected to be completed in the first quarter of 2025.
It is expected to increase the Mobix revenue (Nasdaq: MOBX) and earnings on close, giving a much-needed boost to the local company.
To Add About 150 Employees
Spacecraft Components has already been a long-standing supplier of components to Mobix Labs.
Mobix Labs had a market cap of $31 million as of Nov. 27, down from $55 million in April, and had 60 employees as of January.
The acquisition is expected to increase Mobix Labs’ workforce by approximately 150 employees, primarily based in Nevada.
Spacecraft Components reported unaudited revenues of $18.1 million in 2023, with forecasted growth for the next two years.
The terms of the transaction include a purchase price ranging from $18 million to $24 million, with consideration to be paid in a combination of cash and equity, subject to earnout provisions, all of which will be finalized subject to completion of due diligence.
Mobix Looking to Overcome Challenges
Mobix Labs designs, develops and sells components and systems for advanced wireless and wired connectivity, radio frequency, switching and filtering technologies.
Its products are used in aerospace, defense, 5G, medical, industrial and other high-reliability markets.
Mobix’s True Xero active optical cables are designed to meet customer needs for high-quality active optical cable solutions at an affordable price.
The company’s electromagnetic filtering products are used in military and aerospace applications.
If the transaction closes as anticipated, it will materially increase Mobix Labs’ revenue in fiscal year 2025, the company said.
Mobix is looking to overcome the difficulties it was facing earlier this year.
Mobix’s balance sheet showed only $205,000 in cash as of June 30.
And it told the SEC two months later: “We cannot assure you that we will achieve or maintain profitability and our auditor has expressed substantial doubt about our ability to continue as a going concern.”
For now, Samini said, “Mobix Labs is doing OK in general.”
He said he expects revenue next year will be triple that of this year.
Mobix Labs said Oct. 15 that its revenue for the last quarter of fiscal year 2024, ended Sept. 20, was $2.9 million for an increase of more than 44% quarter on quarter, according to preliminary figures. Final revenue figures for the fourth quarter and the full fiscal year will be released in an earnings statement this month.
The company said in September it was bidding $34.4 million for aerospace and defense supplier Emcore Corp. of Budd Lake, New Jersey, another deal designed to jump-start its revenue.
