Hardware and Software Networking and Encryption Solutions

Business Description

For sale is a 20-year-old upstate NY-based company that designs and manufactures ultra high-speed network switch appliances and software architectures for networking and encryption for military and enterprise level network switches. They provide end-to-end design services from concept through production units.
Combining Marvell, Arm, and Linux technologies, they have developed scalable Layer3 Networking Switch systems with line rates to 50 Gb/s per channel and over 256 channels in total. The design techniques and manufactured systems they provide for their DoD customers support aggregate rates exceeding 12 Tb/s.

They currently have one client in the Department of Defense who represents around 80% of revenue (split between 60% manufacturing and 40% engineering/development). However, this client acts as a vendor to many other companies such as Lockheed Martin and General Dynamics.

All parts are manufactured and assembled domestically. The company does final assembly and function tests in-house before delivery to their clients.

They are one of the few companies in the country operating in this specific niche and they’ve experienced YoY growth with very high margins (typically around 70%). This is due to the fact that they are operating in a key market doing design work that not many people can do and the end products are integrated into high use environments.

The owner and his right-hand VP are looking to stay on with the business after its acquisition, with roles focused around CTO and project management responsibilities. An ideal buyer would most likely have a design/engineering support team in place as well as the ability to manufacture printed circuit boards.

Financial Overview

Asking Price: $4,400,000

Revenue: $1,601,266

Income: $1,112,717

Multiple: 3.95x

The listing is either pending or closed so the NDA cannot be signed