TransDigm Group Incorporated (NYSE:TDG) announced that it has reached an agreement to acquire Stellant Systems, Inc. in an all-cash transaction valued at approximately $960 million, further expanding its defense electronics portfolio.
The deal, reported Wednesday, includes certain tax benefits and reflects TransDigm’s continued focus on proprietary aerospace and military components.
Stellant, headquartered in Torrance, California, designs and produces high-power electronic components used in defense, space, and aerospace platforms.
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The acquisition is subject to U.S. regulatory approvals and customary closing conditions and is expected to be completed in 2026.
Aftermarket Exposure And Strategic Fit
Nearly half of Stellant’s revenue is generated from aftermarket sales, a segment TransDigm has long prioritized for its recurring demand and pricing power. The company’s largely proprietary products are embedded in long-lived platforms, making them a natural complement to TransDigm’s existing portfolio.
TransDigm CEO Mike Lisman said, “We are excited to have an agreement to acquire Stellant. The company’s highly engineered, proprietary products generate significant aftermarket revenue and fit well with our long-standing business strategy.” He added that the acquisition aligns with TransDigm’s long-term value creation goals.
TransDigm held cash and cash equivalents of $2.808 billion as of September 2025.
Stellant Ownership And Growth Outlook
Stellant employs roughly 950 people across four U.S. manufacturing sites and expects to generate about $300 million in revenue in 2025. Keith Barclay, CEO of Stellant Systems, said, “Stellant has never been stronger than it is today,” citing operational improvements and a robust product pipeline.
Peter Manos, managing partner at Arlington Capital Partners, said Stellant exemplifies how an IP-rich carve-out can be built into a valuable platform through sustained investment across talent, research and development, product expansion, and manufacturing scale.
Calling the process “a remarkable journey,” Manos highlighted the work alongside CEO Keith and the broader management team to grow Stellant into a highly attractive asset with what he described as a potential “multi-generation legacy.”
He added that TransDigm Group represents an ideal long-term owner, noting that its interest in partnering with Stellant underscores the company’s strength and its importance as a trusted supplier to customers.
TDG Price Action: TransDigm shares were up 1.05% at $1,330.26 at the time of publication on Wednesday, according to Benzinga Pro data.
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