In 1999 Ramco Capital, with Scorpion Capital Partners, led the LBO of 100% of WalkAbout Computers, a rapid growth stage company and market leading manufacturer of ruggedized tablet computers.
In 2000, when tech spending tanked and the manufacturing sector melted down, WalkAbout was badly shaken. In 2001, the company was restructured, refinanced and repositioned to the military market. WalkAbout was sold in June of 2005 to DRS Technologies (NYSE:DRS), the leading purveyor of electronic hardware to the military market. |
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Business Criterion
The business had a consistent operating history.
Management Criterion
The SMT (founders of the company) were candid,
competent, and commited to tight cost controls.
Financial Criterion
Prior to the downturn in tech spending, management
generated a remarkable return on equity. The cash
generating ability of the business was 'off the charts' due
to low fixed assets to profits.
Market Criterion
The company was bought for 2x owners earnings, a
remarkable value. |
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Monday June 27, 9:25 am ET
PARSIPPANY, N.J.--(BUSINESS WIRE)--June 27, 2005--DRS
Technologies, Inc. (NYSE: DRS - News) announced today that it has
acquired WalkAbout Computers, Inc. from Scorpion Holdings in a stock
purchase transaction. The terms were not disclosed.
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