Astronics Corporation, a leading provider of advanced technologies for the global aerospace and defense industries, today announced that it has entered into a definitive agreement to acquire substantially all of the assets of Telefonix Inc. and a related company, Product Development Technologies, LLC, (together as "Telefonix") for approximately $104 million in cash, funded with Astronics' senior revolving credit facility. The acquisition is expected to close by year end, and is subject to typical closing conditions, including a review under the Hart-Scott-Rodino Antitrust Improvements Act.

Telefonix PDT, located in Waukegan and Lake Zurich, Illinois, designs and manufactures advanced in-flight entertainment and connectivity equipment, as well as providing industry leading design consultancy services for the global aerospace industry. The company's products include wireless access points, file servers, content loaders, passenger control units and cord reels, as well as engineering services for its customers.

"We believe Telefonix is an excellent strategic fit with Astronics. Telefonix is a leader in the critical equipment it designs and manufactures and has successfully established itself with an impressive set of aerospace customers. We believe that Astronics will be able to both strengthen and benefit from the technology and relationships that Telefonix brings to our company," stated Peter J. Gundermann, President and CEO of Astronics. "We welcome the Telefonix team to Astronics. We are confident the combination of world-class capabilities from both organizations will serve to further our mutual goals.\"

Telefonix has forecasted 2017 annual sales of approximately $60 million to $70 million. Its historical adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margins have been consistent with Astronics' aerospace segment's past performance. The acquisition is expected to be accretive to earnings in 2018. Its impact on 2017 earnings will depend on the closing date and one-time acquisition related charges, but is expected to be nominal.