In today's earlier blog covering Eurotech’s big bet on M2M, we mainly discussed the Eurotech side of the deal. In this follow-up we will provide VDC's View of the Curtiss-Wright side as we believe they have a shrewd strategy in play. In Parvus, Curtiss-Wright receives a complementary set of mobile computing and networking products that will allow diversification beyond their core Mil/Aero markets into markets such as industrial where ruggedized products with superior Size, Weight, and Power (SWAP) attributes will be increasingly valued. With ~$20M or more in 2012 revenues and an EBITDA of ~25% Parvus is definitely not a white elephant.
In summary, we see the basic business principles behind the Eurotech / Curtiss-Wright deal as being similar to those behind the 2012 blockbuster deal between the Boston Red Sox and Los Angeles Dodgers. The Dodgers acquiring valuable players complementary to their target market and the Red Sox gaining liquidity to pursue a different team building strategy. Given that 2013 finds both the Red Sox and Dodgers well positioned to succeed in the playoffs, one can hope that Eurotech and Curtiss-Wright will also succeed in their pursuits in 2013 and beyond.
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