HANOVER, Md., May 18, 2016 (GLOBE NEWSWIRE) — The KEYW Holding Corporation (NASDAQ:KEYW) announced today it has signed a definitive agreement to sell the HawkEye G product line business of Hexis Cyber Solutions. This transaction is the second Hexis product line business to be sold and the combined deal value of the two transactions is approximately $20 million in cash and purchaser stock.
As disclosed on KEYW’s first quarter earnings call on May 10, 2016, Hexis’ HawkEye AP product line business was sold to Ignite Analytics, Inc., an affiliate of Ignite Technologies, Inc., in a transaction that closed on May 2, 2016. On May 17, 2016, KEYW signed a definitive agreement to sell the Hexis HawkEye G product line business in a transaction to a private-equity backed, established strategic buyer in the security technology industry. Specific terms of the individual transactions were not disclosed, and the HawkEye G transaction is subject to customary closing conditions.
“As we disclosed on our recent earnings calls and during our April 7 Analyst and Investor Day, KEYW initiated a broad process to explore strategic alternatives for Hexis Cyber Solutions in late 2015. Today, I am pleased to report that we have signed a definitive agreement to sell HawkEye G. We expect to announce the closing of the HawkEye G transaction in the coming weeks,” said Bill Weber, KEYW’s president and CEO.
“With the anticipated completion of the Hexis transactions, KEYW is better able to leverage its position as an end-to-end, pure-play intelligence solutions provider to federal government customers and nations friendly to the U.S.,” continued Weber. “We look forward to generating organic growth as well as healthy margins in 2016 and beyond as we begin to capture large prime solutions contracts and continue to grow sales of our innovative products and technologies.”
Forward-Looking Statements: Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements containing the words “estimates,” “believes,” “anticipates,” “plans,” “expects,” ‘will,” “potential,” “opportunities,” and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements, including, but not limited to, express or implied statements concerning: our expectations regarding our future financial performance, including the potential impact of successful contract awards; our bid and proposal pipeline; our ability to achieve projected growth in certain of our business units and the expected timing of such growth; demand for our products, services and solutions serving the intelligence, cyber and counterterrorism communities; and performance of key contracts, including the timing of production related to certain of our contracts and product offerings. Factors that may cause our results to differ, potentially materially, from those expressed or implied in our forward-looking statements include, but are not limited to: risks to our business and financial results related to reductions and other spending constraints imposed on the U.S. Government, including as a result the Federal budget deficit and Federal government shut-downs; risks of adverse regulatory action or litigation; risks that changes, cutbacks or delays in spending by Intelligence Community (IC) customers, including the National Security Agency (NSA), the National Geospatial-Intelligence Agency (NGA), and other agencies within the IC, the Federal Bureau of Investigation, and the Department of Defense (DoD) may occur, which could cause delays or cancellations of key government contracts; risks of delays to or the cancellation of our projects as a result of protest actions submitted by our competitors; risks that changes may occur in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks related to changes in government and customer priorities and requirements (including cost-cutting initiatives, the potential deferral of awards, terminations or reduction of expenditures to respond to the priorities of Congress and the Administration; and those risk factors set forth in our Annual Report on Form 10-K, dated and filed March 16, 2018 with the Securities and Exchange Commission (SEC), and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, investors are cautioned not to place undue reliance on such forward-looking statements. We are under no obligation to (and expressly disclaims any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
Director, Corporate Communications
Vice President, Investor Relations and Treasury