Sakar Tackles Language Divide
The military contractor has made a defense play with the purchase of Dial Directions, a San Francisco software company.
July 1, 2009
As the defense industry continues to see significant consolidation, dealmakers look for answers as to which sub-sectors may see the most near-term growth.
Sakhar Software, a translation software company, thinks it has the answer. The company Kuwait-based provider of services to the U.S. Department of Defense, Department of Homeland Security, and the Department of Justice attempted to diversify its product offerings through its acquisition of Dial Directions, a speech recognition company in San Francisco.
Dial Directions develops speech recognition services and voice-activated interface cell phone applications. In speaking with MergersUnleashed, Adeeb Shanaa, the company’s chief executive said its efforts in “trying to bridge the communication divide” led the two companies to each other.
He said the two companies have developed translation technology that the military can use in the field to prevent the repeat of “situations where of lack of communication led to tragic results.” Sakhar had about 25 million in profit over the last two years, Shanaa said.
“We started working with Sakarr in 2008, as part of that process, we realized that the potential of a merger was greater than the sum of the two parts,” Shanaa said.
The transaction is one of several defense related transactions in recent month. Last month, the listed Springfield, Massachusetts-based firearms maker Smith & Wesson Holding Corp. said it would expand into the homeland security sector with the purchase of Universal Safety Response, Inc., a manufacturer of advanced roadblock barriers and perimeter protection systems.
Last week, Chicago, Illinois-based private equity firm GTCR acquired Harding Security Associates, Inc., an identity intelligence, forensics analysis and security company through its defense intelligence services portfolio company, Six3 Systems.
In June, the Los Angeles-based boutique advisor Salem Partners launched its aerospace and defense services platform with the hiring of Trevor Bohn and Sean Walker, former Banc of America Securities LLC A&D veterans. Walker is a former US Naval Officer.
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