Tag: Defense

Boeing’s defense arm weighs sale of small surveillance business

boeing logo dark skies

Storm clouds gather behind the logo of Boeing at the 2023 Paris Air Show. (Aaron Mehta/Breaking Defense)

WASHINGTON — Boeing is considering selling off a small defense subsidiary that makes surveillance equipment for the US military and intelligence community, Breaking Defense has learned.

Boeing has engaged financial advisers to seek out potential buyers for its Digital Receiver Technology Inc. business, as well as to gauge interest in unspecified defense programs under Boeing’s aftermarket business division, Bloomberg first reported on Tuesday, citing people familiar with the discussions.

A source with knowledge of the discussions told Breaking Defense that conversations about the DRT sale have been going on for about a year — long before the U.S. planemaker became embroiled in a reputational crisis after a door plug ripped off a Boeing 737 MAX airliner in mid-air in January.

Boeing declined to comment on Tuesday. During a Bank of America conference earlier today, Chief Financial Officer Brian West said he wouldn’t speculate on whether the company would sell off portions of its defense business, but said the reported divestments were “pretty small to us, both economically and strategically.”

“We love our strategic position across our defense portfolio,” he said.

Boeing acquired Germantown, Md.-based DRT in 2008, when the aerospace giant was seeking to expand its presence in the intelligence sector. DRT, which sold for an undisclosed amount, specializes in the production of wireless receivers and transceivers.

Richard Aboulafia, an aerospace expert with AeroDynamic Advisories, said a sale of DRT is unlikely to have any material financial impact for Boeing, which has been struggling under the weight of $39 billion in debt and could face further financial headwinds as it considers re-acquiring Spirit AeroSystems, a Boeing spin off which makes large fuselage components for Boeing and Airbus commercial jets.

Selling DRT could

Small Business Administration and Department of Defense Launch Small Business Investment Company Critical Technologies Initiative | Foley Hoag LLP

Key Takeaways:
  • On September 29, 2023, the U.S. Small Business Administration and the Department of Defense announced a major policy initiative aimed to incentive private capital investment in U.S. small businesses developing critical technologies.
  • As part of the initiative, the U.S. Small Business Administration has started accepting applications for Critical Technology Small Business Investment Companies which may qualify for low-cost leverage to encourage investment in these small businesses.
  • U.S.-based small businesses developing technologies related to biotechnology, quantum science, future generation wireless technology, advanced materials, AI and autonomy, integrated network systems-of-systems, microelectronics, space technology, renewable energy generation and storage, advanced computing and software, human-machine interfaces, directed energy, hypersonics and integrated sensing and cyber may be attractive to private capital investments incentivized by this new program initiative.

On September 29, 2023, the U.S. Small Business Administration (SBA) and the Department of Defense (DoD) announced the rollout of the Small Business Investment Company Critical Technology (SBICCT) Initiative, a joint effort between the SBA and the DoD to increase private capital investment in critical technologies vital to U.S. national security interests.

According to the Investment Policy Statement for the SBICCT Initiative released by DoD and SBA, the mission of the program is to incentive investors to catalyze investment in critical technology areas such as biotechnology, quantum science, future generation wireless technology, advanced materials, AI and autonomy, integrated network systems-of-systems, microelectronics, space technology, renewable energy generation and storage, advanced computing and software, human-machine interfaces, directed energy, hypersonics and integrated sensing and cyber. Building off the existing Small Business Investment Company (SBIC) program, DoD and SBA will partner to license SBIC fund managers with a strategic intent to invest at least 60% of capital in portfolio companies directly involved in the development of one or more critical technology areas designated by DoD. Once licensed as a

Place of work of Strategic Capital, Compact Small business Administration to Signal Memorandum of Arrangement > U.S. Section of Defense > Release

The DoD’s Office of Strategic Money (OSC) and the Compact Organization Administration (SBA) Workplace of Expense and Innovation (OII) announced intent to sign a Memorandum of Agreement (MOA) March 10 at the South by Southwest Pageant in Austin. This arrangement will outline long run OSC and SBA cooperation and builds off the announcement of the partnership on Dec. 3, 2022 for collaboration on the SBIC Crucial Technologies (SBICCT) Initiative. 

The SBICCT represents OSC’s 1st method initiative, a joint initiative with the SBA’s highly effective Modest Enterprise Investment decision Business (SBIC) program. It will maximize early-phase financial investment in essential technology places that require longer-period, reduced return “patient capital” to produce, these as semiconductors, advanced materials, and biotechnology. 

The SBICCT Initiative is underpinned by new proposed SBA rules for enlargement of the SBIC plan and introduction of a new money instrument – the Accrual Debenture. This proposed instrument will much better align with the cashflow specifications of startups in the components technological innovation place and present the “patient capital” expected for these firms to develop into flourishing, instrumental companions for the USG and DOD. 

“Throughout its 65-yr history, the SBA’s Little Company Investment decision Organization (SBIC) plan has seeded and scaled some of the most innovative and effective corporations in the environment, said Bailey DeVries, Associate Administrator of the SBA’s Office environment of Expense and Innovation. “From semiconductors to particular computer systems to digital autos, community-personal SBIC partnerships have sparked the progress of new industries by rising startups and sustained compact corporations satisfying essential wants in our domestic provide chain and communities all around the nation. 

“This settlement signifies a all-natural extension of our longstanding partnership with the Department of Defense and a dedication by the two of our organizations to be intentional in our initiatives to dedicate money and means