Defense & Government Services Market Intel Report

INVESTMENT BANKING September 2021

IN THIS ISSUE DEFENSE & GOVERNMENT Industry Expertise 2 Publicly Traded Companies 3 Recent M&A Activity 9 MARKET INTEL REPORT Recently Awarded Contracts 13

FOR INSTITUTIONAL USE ONLY MARKET INTEL REPORT September 2021

Industry Expertise: Illustrative Transactions

Has entered into a definitive agreement to A portfolio company of DEFENSE & GOVERNMENT be acquired by Has received a strategic & Has been acquired by Has been acquired by Has been acquired by SERVICES TEAM investment from A portfolio company of Has been acquired by & Evergreen Coast Capital SAM MANESS Managing Director 703.657.4646 [email protected] Has acquired Has been acquired by A portfolio company of A portfolio company of Has received a strategic Has been acquired by investment from ANDY MCENROE A portfolio company of Director Has been acquired by Has been acquired by A portfolio company of 703.657.4630 [email protected] The Federal Government IT ELLIS CHAPLIN Solutions Business of

Director Has received Has been acquired by Has been acquired by $227,700,000 Has been acquired by 703.657.4620 financing from Has been acquired by [email protected] Follow-On Offering Co-Manager NATALIE WARTHER

Vice President The Global Defense The Government 703.657.4622 Services Business of Services Business of A portfolio company of [email protected] Has been acquired by Has been acquired by Has been acquired by Has been acquired by Has been acquired by Has been acquired by WASHINGTON, D.C. OFFICE 1875 Explorer Street, Suite 910 Reston, VA 20190 *Transactions occurred between November 2016 and August 2021

RAYMOND JAMES HEADQUARTERS Illustrative Equity Research Coverage 880 Carillon Parkway GOVERNMENT TECHNOLOGY & SERVICES SATELLITE COMMUNICATION SERVICES St. Petersburg, FL 33716

*The public companies displayed are actively covered by Raymond James Equity Research analysts RAYMOND JAMES INVESTMENT BANKING 2 MARKET INTEL REPORT September 2021

Publicly Traded Companies

Last 12 Months Public Equity Index Chart 175% 175%

150% 150%

125% 125%

100% 100%

75% 75% Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21

Government Services Multi-Platform Contractors Defense Technology Diversified IT State & Local

Commercial Aerospace – Commercial Aerospace – Space & Satellite S&P 500 OEM Suppliers & Aftermarket

Sources: Capital IQ; DACIS / Infobase; Bloomberg Government; Washington Technology; Data as of 8/31/2021; sector returns are weighted by market capitalization Note: Companies included are those tracked internally by Raymond James – Individual assets disclosed on pages 5–8. Performance does not include commissions & fees; past performance is no guarantee of future results.

RAYMOND JAMES INVESTMENT BANKING 3 MARKET INTEL REPORT September 2021

Publicly Traded Companies (cont.)

Comparative Change in Stock Prices (1)

60.0% 50.0% 36.2% 36.9% 40.0% 31.5% 29.8% 30.3% 28.2% 30.0% 23.5% 22.3% 17.1% 20.0% 16.0% 16.1% 15.8% 12.7% 11.4% 10.0% 3.9% 3.4% 5.2%

(0.8%) (0.4%) (1.6%) (3.8%) (0.2%) (10.0%) (4.2%) (3.1%) Commercial Government Multi-Platform Defense Commercial Aerospace – Diversified IT State & Local Services Contractors Technology Aerospace – OEM Suppliers & Space & Satellite Aftermarket One-Year Change YTD Change One-Month Change

EBITDA Valuation Multiples: Single-Day Trading Snapshot (2)

20.0x 17.7x 17.3x 17.0x 15.5x 15.9x 14.6x 13.7x 14.5x 14.0x 14.0x 14.3x 14.0x 15.0x 12.9x 12.7x 13.0x 12.9x 13.2x 13.1x 13.2x 11.4x 11.3x 10.3x 10.7x 10.2x 10.0x

5.0x

Commercial Government Multi-Platform Defense Commercial Diversified IT State & Local Aerospace – Space & Satellite Services Contractors Technology Aerospace – OEM Suppliers & Aftermarket 8/30/2019 8/31/2020 8/31/2021

Source: Capital IQ; Data as of 8/31/2021 (1) Sector returns are weighted by market capitalization as of 8/31/2021; performance does not include commissions & fees. (2) Total enterprise value is defined as equity value plus total debt less cash. TEV / EBITDA valuation multiples less than 0.0x or greater than 40.0x are considered not material in the analysis; figures represent the median of single-day trading multiples for each respective sector. Note: Companies included are those tracked internally by Raymond James – Individual assets disclosed on pages 5–8. Past performance is no guarantee of future results. RAYMOND JAMES INVESTMENT BANKING 4 MARKET INTEL REPORT September 2021

Publicly Traded Companies (cont.)

$ in millions (except for stock price) Market Data Financial Data Valuation Multiples Valuation Multiples Valuation Multiples LTM TEV / LTM TEV / CY 2021 (E) TEV / CY 2022 (P) Stock Price at % of Equity Enterprise Total EBITDA Debt / Total Total Total Company Name Ticker 8/31/2021 52-Week High Value Total Debt Value Sales EBITDA Margin EBITDA Sales EBITDA Sales EBITDA Sales EBITDA

Booz Allen Hamilton Holding Corporation NYSE:BAH $81.91 81.7% $11,073 $3,198 $13,649 $7,892 $865 11.0% 3.4x 1.7x 15.8x 1.7x 15.2x 1.5x 14.2x

CACI International Inc NYSE:CACI $257.54 95.1% $6,074 $2,185 $8,172 $6,044 $669 11.1% 2.8x 1.4x 12.2x 1.3x 12.6x 1.3x 11.4x

ICF International, Inc. NasdaqGS:ICFI $93.66 91.6% $1,766 $471 $2,228 $1,566 $140 8.9% 2.7x 1.4x 15.9x 1.4x 14.5x 1.4x 13.6x

Jacobs Engineering Group Inc. NYSE:J $134.96 92.5% $17,587 $4,104 $20,909 $14,026 $1,210 8.6% 2.9x 1.5x 17.3x 1.4x 15.9x 1.3x 14.0x

Leidos Holdings, Inc. NYSE:LDOS $98.11 86.3% $13,889 $5,798 $19,398 $13,257 $1,461 11.0% 3.7x 1.5x 13.3x 1.4x 13.1x 1.3x 12.3x

ManTech International Corporation NasdaqGS:MANT $79.17 78.1% $3,221 $132 $3,289 $2,557 $246 9.6% 0.5x 1.3x 13.4x 1.2x 13.1x 1.2x 12.7x

PAE Incorporated NasdaqCM:PAE $6.69 62.6% $623 $1,069 $1,630 $2,910 $188 6.5% 4.3x 0.6x 8.7x 0.5x 7.8x 0.5x 7.8x

Parsons Corporation NYSE:PSN $35.43 78.7% $3,632 $863 $4,048 $3,723 $325 8.7% 2.2x 1.1x 12.4x 1.1x 13.3x 1.0x 11.4x Government Services Government Science Applications International Corporation NYSE:SAIC $84.23 81.0% $4,882 $2,792 $7,393 $6,935 $674 9.7% 3.5x 1.1x 11.0x 1.0x 11.3x 1.0x 10.7x

Vectrus, Inc. NYSE:VEC $50.31 83.4% $590 $204 $724 $1,613 $82 5.1% 1.4x 0.4x 8.8x 0.4x 7.8x 0.4x 6.9x

Median: 82.6% $4,257 $1,627 $5,720 $4,883 $497 9.3% 2.9x 1.3x 12.9x 1.3x 13.1x 1.2x 11.9x

Average: 83.1% $6,334 $2,082 $8,144 $6,052 $586 9.0% 2.7x 1.2x 12.9x 1.2x 12.5x 1.1x 11.5x

BAE Systems plc LSE:BA. $7.82 96.3% $25,113 $8,893 $30,403 $26,843 $3,416 12.7% 2.4x 1.1x 8.9x 1.0x 8.0x 1.0x 7.5x

The Boeing Company NYSE:BA $219.50 78.8% $128,660 $63,559 $171,074 $61,658 ($1,794) N.M. N.M. 2.8x N.M. 2.3x 30.0x 1.9x 17.1x

General Dynamics Corporation NYSE:GD $200.31 99.6% $55,897 $15,642 $68,589 $38,521 $5,267 13.7% 2.8x 1.8x 13.0x 1.7x 13.5x 1.7x 12.9x

Honeywell International Inc. NasdaqGS:HON $231.97 97.9% $160,110 $22,357 $170,420 $33,959 $8,340 24.6% 2.6x N.M. 20.4x 4.9x 19.3x 4.5x 17.5x

L3Harris Technologies, Inc. NYSE:LHX $233.01 99.1% $46,822 $7,747 $52,653 $18,358 $3,653 19.9% 2.0x 2.9x 14.4x 2.8x 13.5x 2.7x 12.5x

Lockheed Martin Corporation NYSE:LMT $359.80 89.5% $99,635 $12,171 $109,069 $66,814 $10,228 15.3% 1.2x 1.6x 10.7x 1.6x 10.4x 1.5x 10.0x Platform Contractors

- Northrop Grumman Corporation NYSE:NOC $367.70 97.0% $58,872 $14,159 $68,669 $37,603 $5,572 14.8% 2.3x 1.8x 12.3x 1.9x 11.2x 1.8x 13.4x

Raytheon Technologies Corporation NYSE:RTX $84.76 94.2% $127,071 $33,045 $153,701 $62,297 $9,164 14.7% 3.4x 2.5x 16.8x 2.4x 15.0x 2.2x 12.3x Multi

Median: 96.7% $79,253 $14,901 $88,869 $38,062 $5,420 14.8% 2.4x 1.8x 13.0x 2.1x 13.5x 1.8x 12.7x

Average: 94.1% $87,773 $22,197 $103,072 $43,257 $5,481 16.5% 2.4x 2.1x 13.8x 2.3x 15.1x 2.2x 12.9x

Source: Capital IQ; Data as of 8/31/2021 Financial projections are sourced from Capital IQ consensus estimates; foreign traded companies are listed in U.S. dollars at 8/31/2021 spot exchange rate; TEV / EBITDA valuation multiples less than 0.0x or greater than 40.0x; Debt / EBITDA multiples less than 0.0x or greater than 10.0x, and TEV / Total Sales multiples less than 0.0x or greater than 5.0x are considered not material (“N.M.”) in the analysis; “N.A.” indicates no Capital IQ consensus estimates are available; Debt / LTM EBITDA figures represent total debt divided by LTM EBITDA, which includes a lease adjustment Note: Figures presented are not reflective of any recent acquisitions / divestitures Definitions: Last Twelve Months (“LTM”), Expected Calendar Year 2021 (“CY 2021 (E)”), Projected Calendar Year 2022 (“CY 2022 (P)”), Total Enterprise Value (“TEV”) RAYMOND JAMES INVESTMENT BANKING 5 MARKET INTEL REPORT September 2021

Publicly Traded Companies (cont.)

AeroVironment, Inc. NasdaqGS:AVAV $102.36 71.2% $2,521 $223 $2,563 $395 $70 17.6% 3.0x N.M. 36.9x N.M. 27.9x 4.1x 21.0x

Comtech Telecommunications Corp. NasdaqGS:CMTL $25.52 83.9% $665 $265 $891 $586 $64 10.9% 3.3x 1.5x 13.9x 1.5x 11.6x 1.5x 10.8x

Kratos Defense & Security Solutions, Inc. NasdaqGS:KTOS $24.72 72.5% $3,064 $384 $3,094 $808 $57 7.0% 5.6x 3.8x N.M. 3.7x 36.6x 3.2x 27.9x

Mercury Systems, Inc. NasdaqGS:MRCY $50.38 56.6% $2,833 $282 $3,001 $924 $170 18.5% 1.5x 3.2x 17.6x 3.1x 14.9x 2.8x 12.8x

Teledyne Technologies Incorporated NYSE:TDY $463.38 99.8% $21,597 $4,910 $25,811 $3,485 $809 23.2% 5.8x N.M. 31.9x N.M. 26.3x 4.6x 20.0x

Thales S.A. ENXTPA:HO $101.44 93.0% $21,602 $7,478 $24,805 $20,940 $2,532 12.1% 2.7x 1.2x 9.8x 1.2x 8.2x 1.1x 7.3x

Defense Technology Defense Ultra Electronics Holdings plc (1) LSE:ULE $44.06 93.6% $3,139 $256 $3,228 $1,174 $197 16.7% 1.2x 2.7x 16.4x 2.7x 15.2x 2.6x 14.1x

Median: 83.9% $3,064 $282 $3,094 $924 $170 16.7% 3.0x 2.7x 17.0x 2.7x 15.2x 2.8x 14.1x

Average: 81.5% $7,917 $1,971 $9,056 $4,045 $557 15.2% 3.3x 2.5x 21.1x 2.5x 20.1x 2.8x 16.3x

Accenture plc NYSE:ACN $336.56 99.4% $213,425 $3,448 $207,410 $47,949 $8,031 16.7% 0.4x 4.3x 25.8x 4.0x 20.8x 3.7x 18.2x

Capgemini SE ENXTPA:CAP $224.45 98.8% $37,793 $10,268 $44,932 $20,130 $2,619 13.0% 3.4x 2.2x 17.2x 2.2x 13.9x 2.0x 12.8x

CGI Inc. TSX:GIB.A $89.20 97.1% $21,765 $3,399 $24,092 $9,722 $1,713 17.6% 1.8x 2.5x 14.1x 2.5x 12.5x 2.4x 11.8x

Cognizant Technology Solutions Corporation NasdaqGS:CTSH $76.31 92.2% $40,108 $1,729 $39,987 $17,413 $3,093 17.8% 0.5x 2.3x 12.9x 2.2x 11.8x 2.0x 10.9x

DXC Technology Company NYSE:DXC $36.72 83.1% $9,250 $6,317 $13,416 $17,368 $1,859 10.7% 2.5x 0.8x 7.2x 0.8x 5.0x 0.8x 4.7x Diversified IT Diversified International Business Machines Corporation NYSE:IBM $140.34 91.8% $125,790 $59,789 $177,754 $74,401 $15,992 21.5% 3.3x 2.4x 11.1x 2.4x 9.4x 2.3x 9.3x

NTT DATA Corporation TSE:9613 $18.01 99.6% $25,263 $7,041 $29,250 $21,433 $3,392 15.8% 2.1x 1.4x 8.6x 1.3x 9.3x 1.3x 8.0x

Median: 97.1% $37,793 $6,317 $39,987 $20,130 $3,093 16.7% 2.1x 2.3x 12.9x 2.2x 11.8x 2.0x 10.9x

Average: 94.6% $67,628 $13,142 $76,692 $29,774 $5,243 16.2% 2.0x 2.3x 13.8x 2.2x 11.8x 2.1x 10.8x

Conduent Incorporated NasdaqGS:CNDT $7.30 85.9% $1,552 $1,700 $2,997 $4,150 $456 11.0% 3.0x 0.7x 6.6x 0.7x 6.2x 0.7x 6.3x

Maximus, Inc. NYSE:MMS $87.09 90.7% $5,354 $1,896 $7,154 $4,072 $512 12.6% 3.0x 1.8x 14.0x 1.7x 13.9x 1.7x 13.8x

Tyler Technologies, Inc. NYSE:TYL $485.70 97.3% $19,838 $1,581 $21,151 $1,268 $258 20.3% 5.8x N.M. N.M. N.M. N.M. N.M. N.M.

Verra Mobility Corporation NasdaqCM:VRRM $15.51 88.6% $2,413 $1,012 $3,274 $416 $178 42.9% 5.5x N.M. 18.4x N.M. 13.3x N.M. 11.4x State & Local & State

Median: 89.7% $3,883 $1,641 $5,214 $2,670 $357 16.5% 4.3x 1.2x 14.0x 1.2x 13.3x 1.2x 11.4x

Average: 90.6% $7,289 $1,547 $8,644 $2,476 $351 21.7% 4.3x 1.2x 13.0x 1.2x 11.1x 1.2x 10.5x

(1) On 7/23/2021, Cobham Ltd., a portfolio company of Advent International Corp, made an offer to acquire Ultra Electronics Holdings plc for $3.55 billion. Source: Capital IQ; Data as of 8/31/2021 Financial projections are sourced from Capital IQ consensus estimates; foreign traded companies are listed in U.S. dollars at 8/31/2021 spot exchange rate; TEV / EBITDA valuation multiples less than 0.0x or greater than 40.0x; Debt / EBITDA multiples less than 0.0x or greater than 10.0x, and TEV / Total Sales multiples less than 0.0x or greater than 5.0x are considered not material (“N.M.”) in the analysis; “N.A.” indicates no Capital IQ consensus estimates are available; Debt / LTM EBITDA figures represent total debt divided by LTM EBITDA, which includes a lease adjustment Note: Figures presented are not reflective of any recent acquisitions / divestitures Definitions: Last Twelve Months (“LTM”), Expected Calendar Year 2021 (“CY 2021 (E)”), Projected Calendar Year 2022 (“CY 2022 (P)”), Total Enterprise Value (“TEV”) RAYMOND JAMES INVESTMENT BANKING 6 MARKET INTEL REPORT September 2021

Publicly Traded Companies (cont.)

Aerojet Rocketdyne Holdings, Inc. NYSE:AJRD $41.52 77.6% $3,284 $523 $3,226 $2,137 $281 13.1% 1.8x 1.5x 11.5x 1.5x 11.1x 1.4x 10.9x

Airbus SE ENXTPA:AIR $136.57 95.6% $107,312 $17,733 $104,778 $65,925 $9,133 13.9% 1.9x 1.6x 11.5x 1.7x 12.9x 1.5x 10.6x

Ball Corporation NYSE:BLL $95.96 93.4% $31,342 $8,126 $38,959 $12,779 $2,042 16.0% 3.8x 3.0x 19.1x 2.9x 17.7x 2.6x 15.8x

The Boeing Company NYSE:BA $219.50 78.8% $128,660 $63,559 $171,074 $61,658 ($1,794) N.M. N.M. 2.8x N.M. 2.3x 30.0x 1.9x 17.1x

Honeywell International Inc. NasdaqGS:HON $231.91 97.9% $160,110 $22,357 $170,420 $33,959 $8,340 24.6% 2.6x N.M. 20.4x 4.9x 19.3x 4.5x 17.5x

L3Harris Technologies, Inc. NYSE:LHX $233.01 99.1% $46,822 $7,747 $52,653 $18,358 $3,653 19.9% 2.0x 2.9x 14.4x 2.8x 13.5x 2.7x 12.5x

Lockheed Martin Corporation NYSE:LMT $359.80 89.5% $99,635 $12,171 $109,069 $66,814 $10,228 15.3% 1.2x 1.6x 10.7x 1.6x 10.4x 1.5x 10.0x

Maxar Technologies Inc. NYSE:MAXR $31.79 54.1% $2,306 $2,375 $4,672 $1,768 $391 22.1% 5.4x 2.6x 12.0x 2.6x 11.0x 2.5x 9.7x

Northrop Grumman Corporation NYSE:NOC $367.70 97.0% $58,872 $14,159 $68,669 $37,603 $5,572 14.8% 2.3x 1.8x 12.3x 1.9x 11.2x 1.8x 13.4x

Space & Satellite & Space ORBCOMM Inc. Nasdaq:ORBC $11.49 99.5% $915 $219 $1,107 $255 $45 17.5% 4.5x 4.3x 24.8x 4.1x 18.3x 3.7x 14.7x

Raytheon Technologies Corporation NYSE:RTX $84.76 94.2% $127,071 $33,045 $153,701 $62,297 $9,164 14.7% 3.4x 2.5x 16.8x 2.4x 15.0x 2.2x 12.3x

Trimble Inc. Nasdaq:TRMB $94.22 97.7% $23,708 $1,478 $24,701 $3,454 $743 21.5% 1.9x N.M. 33.2x N.M. 27.4x N.M. 25.2x

Viasat, Inc. Nasdaq:VSAT $51.64 84.2% $3,787 $2,509 $6,057 $2,390 $445 18.6% 4.8x 2.5x 13.6x 2.3x 10.0x 2.0x 9.1x

Median: 94.2% $46,822 $8,126 $52,653 $18,358 $2,042 16.7% 2.5x 2.5x 14.0x 2.3x 13.5x 2.1x 12.5x

Average: 89.1% $61,063 $14,308 $69,930 $28,415 $3,711 17.7% 3.0x 2.5x 16.7x 2.6x 16.0x 2.4x 13.8x

Airbus SE ENXTPA:AIR $136.57 95.6% $107,312 $17,733 $104,778 $65,925 $9,133 13.9% 1.9x 1.6x 11.5x 1.7x 12.9x 1.5x 10.6x

The Boeing Company NYSE:BA $219.50 78.8% $128,660 $63,559 $171,074 $61,658 ($1,794) N.M. N.M. 2.8x N.M. 2.3x 30.0x 1.9x 17.1x OEM

– Bombardier Inc. TSX:BBD.B $1.46 100.0% $3,496 $8,227 $8,999 $15,932 $45 0.3% N.M. 0.6x N.M. 1.5x 15.0x 1.4x 11.1x

CAE Inc. TSX:CAE $28.82 91.6% $9,128 $1,905 $10,504 $2,570 $434 16.9% 4.0x 4.1x 24.2x 3.8x 18.4x 3.2x 13.6x

Dassault Aviation SA ENXTPA:AM $1,127.24 90.7% $9,376 $294 $5,410 $7,058 $600 8.5% 0.4x 0.8x 9.0x 0.7x 7.1x 0.8x 7.3x

Embraer S.A. NYSE:ERJ $17.94 97.6% $3,356 $4,391 $5,376 $4,840 $127 2.6% N.M. 1.1x N.M. 1.2x 30.0x 1.0x 10.4x

General Dynamics Corporation NYSE:GD $200.31 99.6% $55,897 $15,642 $68,589 $38,521 $5,267 13.7% 2.8x 1.8x 13.0x 1.7x 13.5x 1.7x 12.9x

Rolls-Royce Holdings plc LSE:RR. $1.58 45.5% $13,170 $11,129 $20,261 $15,620 ($347) N.M. N.M. 1.3x N.M. 1.2x 12.4x 1.1x 8.3x

Safran SA ENXTPA:SAF $125.42 83.2% $53,464 $8,157 $57,284 $17,376 $2,601 15.0% 3.0x 3.3x 22.0x 3.1x 16.2x 2.6x 12.4x

Textron Inc. NYSE:TXT $72.67 97.2% $16,288 $4,222 $18,515 $12,472 $1,294 10.4% 3.1x 1.5x 14.3x 1.4x 13.1x 1.3x 11.7x

Commercial Commercial Aerospace Raytheon Technologies Corporation NYSE:RTX $84.76 94.2% $127,071 $33,045 $153,701 $62,297 $9,164 14.7% 3.4x 2.5x 16.8x 2.4x 15.0x 2.2x 12.3x

Median: 94.2% $16,288 $8,227 $20,261 $15,932 $600 13.7% 3.0x 1.6x 14.3x 1.7x 15.0x 1.5x 11.7x

Average: 88.5% $47,929 $15,300 $56,772 $27,661 $2,411 10.7% 2.7x 1.9x 15.8x 1.9x 16.7x 1.7x 11.6x

Publicly Traded Companies (cont.)

AAR Corp. NYSE:AIR $33.85 74.4% $1,201 $205 $1,354 $1,652 $82 4.9% 2.0x 0.8x 16.6x 0.8x 9.8x 0.7x 7.3x

Astronics Corporation NasdaqGS:ATRO $13.36 63.8% $412 $195 $574 $438 ($5) N.M. N.M. 1.3x N.M. 1.3x N.M. 1.0x 9.3x

Barnes Group Inc. NYSE:B $47.67 82.7% $2,411 $656 $2,976 $1,181 $222 18.8% 2.7x 2.5x 13.4x 2.3x 11.8x 2.1x 10.2x Aftermarket

Curtiss-Wright Corporation NYSE:CW $121.78 91.3% $4,979 $1,185 $5,966 $2,459 $526 21.4% 2.1x 2.4x 11.3x 2.4x 11.1x 2.3x 10.4x & & HEICO Corporation NYSE:HEI $126.82 85.1% $16,148 $387 $16,523 $1,782 $461 25.8% 0.8x N.M. 35.9x N.M. 32.3x N.M. 27.3x

Hexcel Corporation NYSE:HXL $56.71 87.3% $4,755 $909 $5,548 $1,213 $135 11.1% 6.0x 4.6x N.M. 4.1x 28.4x 3.4x 17.2x

Magellan Aerospace Corporation TSX:MAL $8.34 89.9% $481 $60 $506 $555 $32 5.8% 1.6x 0.9x 15.6x 0.9x 8.6x 0.8x 5.9x

Suppliers Moog Inc. MOG.A $79.44 86.4% $2,543 $1,008 $3,461 $2,835 $319 11.3% 2.9x 1.2x 10.8x 1.2x 10.1x N.A. N.A. – MTU Aero Engines AG XTRA:MTX $229.40 86.4% $12,231 $1,698 $13,129 $4,662 $503 10.8% 3.1x 2.8x 26.1x 2.5x 16.0x 2.3x 12.8x

Parker-Hannifin Corporation NYSE:PH $296.67 91.4% $38,301 $6,719 $44,263 $14,348 $2,975 20.7% 2.2x 3.1x 14.9x 2.9x 13.6x 2.7x 12.3x

Spirit AeroSystems Holdings, Inc. NYSE:SPR $39.24 73.2% $4,137 $3,687 $6,555 $3,586 ($90) N.M. N.M. 1.8x N.M. 1.6x N.M. 1.3x 12.9x

Aerospace Thales S.A. ENXTPA:HO $101.44 93.0% $21,602 $7,478 $24,805 $20,940 $2,532 12.1% 2.7x 1.2x 9.8x 1.2x 8.2x 1.1x 7.3x

TransDigm Group Incorporated NYSE:TDG $607.47 88.3% $33,479 $20,416 $49,372 $4,692 $1,838 39.2% N.M. N.M. 26.9x N.M. 21.8x N.M. 18.8x

Triumph Group, Inc. NYSE:TGI $18.46 81.3% $1,193 $1,611 $2,566 $1,771 $159 9.0% N.M. 1.4x 16.1x 1.6x 16.4x 1.6x 11.9x

Woodward, Inc. NasdaqGS:WWD $120.94 92.5% $7,625 $825 $8,090 $2,207 $370 16.8% 2.2x 3.7x 21.8x 3.4x 18.4x 3.1x 15.7x

Median: 86.4% $4,755 $1,008 $5,966 $2,207 $319 12.1% 2.2x 1.8x 15.9x 1.6x 13.6x 1.9x 12.1x Commercial Average: 84.5% $10,100 $3,136 $12,379 $4,288 $671 16.0% 2.6x 2.1x 18.3x 2.0x 15.9x 1.9x 12.8x

Recent M&A Activity

M&A Activity Breakdown by Sector

114 106 97 19.3%

42.5% 27.8% 78 70 59 29.5% 56.1% 48.6% 37.3% 53.6% 44.3% 53.8% 49.2% 41.4% 24.6% 18.6% 13.5% 10.0% 13.2% 16.7% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021-to-Date Aerospace / Space Government Services Government & Defense Technology

M&A Activity Breakdown by Buyer Type

114 106 97

78 70 51.9% 57.0% 51.5% 59 44.9% 52.9% 62.7%

48.1% 48.5% 43.0% 55.1% 47.1% 37.3%

Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021-to-Date Private Equity Strategic

Source: Capital IQ, DACIS / Infobase RAYMOND JAMES INVESTMENT BANKING 9 Note: Totals Include all closed transactions reported by DACIS / Infobase as of 8/31/2021 MARKET INTEL REPORT September 2021

Recent M&A Activity (cont.) Closed Date Target Name Target Description Acquirer(s) Seller(s) Government Services MCR provides cost analysis, engineering, and software development expertise. MCR has developed an integrated approach to service delivery that combines Harrison Street Pending MCR, LLC Arlington Capital Partners visualization, analytics, and high-performance talent acquisition which are all Capital, LLC applied through CommandEdge, its internal operational platform.

Frazer-Nash is a provider of high-end systems engineering, assurance and Babcock technology advisory services. The company provides a broad range of KBR, Inc. Pending Frazer-Nash Consultancy Limited International professional advisory services across the defense, energy, and critical (NYSE: KBR) Group plc infrastructure sectors primarily in the U.K. and Australia.

IronNet Cybersecurity is a global cybersecurity leader that revolutionizes how organizations secure their networks. IronNet integrates deep tradecraft LGL Systems Acquisition Corp. 8/27/2021 IronNet Cybersecurity, Inc. Private knowledge into its industry-leading products to solve the most challenging (NYSE: DFNS) cyber problems facing the world today.

GovQA is a provider of cloud-based SaaS public records, specializing in Granicus, Inc. technology, consulting, government, and commercial grade high-volume [Harvest Partners, LP, Vista 8/26/2021 GovQA Private transaction processing. GovQA transforms public records management to make Equity Partners, LLC & K1 government processes simpler, easier, and more transparent. Investment Management]

Trusted Concepts is a provider of high-end information technology services, with domain expertise in cyber, data analytics, secure communications, and Two Six Technologies, LLC 8/24/2021 Trusted Concepts, Inc. Private encryption. The company developed the proprietary security product [The Carlyle Group] TrustedKeep, which provides scalable, object-level encryption.

Salient CRGT is a provider of data analytics, cloud, agile software development, GovernmentCIO, LLC Bridge Growth cybersecurity, and enterprise solutions to U.S. national security, federal civilian, 8/19/2021 Salient CRGT, Inc. [Welsh, Carson, Anderson Partners, LLC & and federal health agencies. These core capabilities are supported with full & Stowe] Frontenac Co., LLC lifecycle enterprise IT services and training.

Novetta Solutions is a provider of advanced analytics solutions utilizing Accenture plc 8/19/2021 Novetta Solutions, LLC machine learning, cyber, and cloud engineering to help U.S. federal The Carlyle Group (NYSE: ACN) organizations deal with massive disparate data sets.

ERPi provides IT solutions, artificial intelligence/machine learning, and Enterprise Resource healthcare domain expertise to government entities. The company supports ECS Federal, LLC 8/9/2021 Private Performance, Inc. (“ERPi”) key health initiatives including electronic health records modernization, post- [ASGN, Inc. (NYSE:ASGN)] COVID-19 care models, and improved access to provider and cost information. Source Code is a provider of engineered computing solutions operating across three segments: high-performance computing/artificial intelligence hardware, Cerberus Capital JMC Capital 8/2/2021 Source Code, LLC edge computing, and IT services. The company helps customers address IT Management, L.P. Partners challenges through its edge-to-data, center-to-cloud, infrastructure, and computing capabilities. Source: Capital IQ, DACIS / Infobase RAYMOND JAMES INVESTMENT BANKING 10 MARKET INTEL REPORT September 2021

Recent M&A Activity (cont.) Closed Date Target Name Target Description Acquirer(s) Seller(s) Government & Defense Technology IAI develops and deploys cutting edge technologies that address key Department of Defense (“DoD”) funding priorities through its expertise in artificial intelligence / machine learning, advanced RF & communication BlueHalo, LLC Pending Intelligent Automation, Inc. (“IAI”) systems, and modeling & simulation. IAI is comprised of 240+ world class Private [Arlington Capital Partners] scientists, developers, and engineers that leverage a multi-disciplinary, collaborative approach and a substantial IP portfolio to transition concepts into deployable situations. Spear Power Systems is a lithium-ion battery storage systems designer and manufacturer developing next generation scalable lithium-ion battery storage Sensata Technologies Pending Spear Power Systems, Inc. systems for demanding land, sea, and air applications. Spear Power Systems' Holding N.V. Private energy storage systems are cell-agnostic and include proprietary battery (NYSE: ST) management and monitoring for all lithium-ion chemistries.

ASSETT is a provider of undersea warfare and unmanned systems technologies. The company develops artificial intelligence and machine learnings VTG Services, Inc. Pending ASSETT, Inc. Private applications for undersea and unmanned systems as well as offering expertise [The Jordan Company] in submarine SONAR acoustics and signal processing.

The Electron Devices and Narda Microwave-West divisions of L3 Harris The Electron Devices and Narda Technologies are providers of radio frequency amplification products for the L3 Harris Pending Microwave-West Divisions of L3 space, electronic warfare, radar, medical, and industrial end markets. The Arlington Capital Partners Technologies Harris Technologies divisions design and assemble traveling wave tubes, nano microwave power (NYSE: LHX) modules, and other related subsystems.

Alion provides advanced engineering and R&D services in the areas of ISR, Huntington Ingalls Veritas Capital Fund 8/19/2021 Alion Science & Technology Corp. military training and simulation, cyber, data analytics, and other technology Industries, Inc. Management, LLC based solutions to DoD and Intelligence Community (“IC”) customers. (NYSE: HII)

GEOST provides services in active and passive optical remote sensing and 8/19/2021 GEOST, Inc. provides expertise in all phases of project development for electro-optics and ATL Partners Private sensors.

BEI Precision designs, engineers, and manufactures accurate, resilient, and BEI Precision Systems reliable position feedback sensors and frequency reference technologies for Quantic Electronics 8/17/2021 J.F. Lehman & Co. & Space Company mission-critical space, land, air, and sea applications. The company's products [ArclineInvestment Management] are designed into many of the U.S. government's highest-priority programs.

Spire collects space-based data using a proprietary constellation of multi- purpose nanosatellites called the Low Earth Multi-Use Receiver (“LEMUR”). The NavSight Holdings, Inc. 8/16/2021 Spire Global, Inc. Private company's software analytics generate proprietary data, insights and (NYSE: NSH) predictive analytics for its global customers through a subscription model.

Source: Capital IQ, DACIS / Infobase RAYMOND JAMES INVESTMENT BANKING 11 MARKET INTEL REPORT September 2021

Recent M&A Activity (cont.) Closed Date Target Name Target Description Acquirer(s) Seller(s) Aerospace / Space Virgin Orbit is a provider of proprietary air-launch, liquid-fueled rocket technology used to place satellites into orbit. The company uses a customized NextGen Acquisition Corp II Pending Virgin Orbit, LLC Private 747 aircraft as a mobile launch site, a flying mission control, and a fully-reusable (NasdaqCM: NGCA) first stage vehicle.

ITP Aero designs, develops, manufactures and maintains gas turbine engines Rolls Royce Industria de Turbo Propulsores Pending used in aerospace (both fixed-wing and rotary-wing), naval, energy generation Bain Capital, LLC Group plc S.A (“ITP Aero”) and other industrial applications. (LSE: RR.)

FlightAware is a digital aviation company providing global flight tracking solutions, predictive technology, analytics, and decision-making tools. Collins Aerospace Systems Pending FlightAware, LLC FlightAware serves all segments of the aviation marketplace through best-in- [Raytheon Technologies Private class applications and data services that provide comprehensive information Corp. (NYSE: RTX)] about the current and predicted movement of aircraft.

Redwire, LLC provides critical space infrastructure technology and services delivers critical solutions to meet the growing needs of national Genesis Park Acquisition Corp. 9/2/2021 Redwire, LLC AE Industrial Partners security, civil, and commercial customers for a full spectrum of activity in (NYSE: GNPK) space.

Unical Aviation is a provider of aircraft parts and components to the global commercial aerospace market. With more than 85 million parts and over 1.3 8/16/2021 Unical Aviation Inc. Platinum Equity Holdings Private million unique airframe and engine part numbers in stock, Unical is one of the largest suppliers of serviceable material for the global aerospace industry.

Global Jet Services, Inc. offers professional development, safety training, 8/4/2021 Global Jet Services, Inc. airframe, and avionics training services for the U.S. federal government and CAE, Inc. Private private aviation markets.

Integral Aerospace is a manufacturer of flight-critical products for military and commercial aircraft and offers complete, design-through-delivery capability for PCX Aerosystems, LLC Admiralty 8/2/2021 Integral Aerospace, LLC full-up aircraft, rotorcraft and unmanned aerial vehicle (“UAV”) landing gear [Greenbriar Equity Group] Partners, Inc. systems.

Source: Capital IQ, DACIS / Infobase RAYMOND JAMES INVESTMENT BANKING 12 MARKET INTEL REPORT September 2021

Recently Awarded Contracts

Date Customer(s) Winning Bidder(s) Amount ($MM) Description

Defense Health Agency, Managed Care Contracting DHA MC CD contracts for TRICARE Pharmacy 8/5/2021 Express Scripts, Inc. $4,287.0 Division (“DHA MC CD”) Services, Generation 5 (“TPharm5”)

SEC contracts for integrated professional 8/17/2021 U.S. Securities and Exchange Commission (“SEC”) C2 Alaska, LLC $2,500.0 acquisition support services 2.0

DHA contracts for military health system 8/30/2021 Defense Health Agency (“DHA”) Peraton, Inc. $2,000.0 Enterprise Information Technology Services Integrator (“EITSI”)

AFNWC contracts for Advanced Extremely High 8/13/2021 U.S. Air Force Nuclear Weapons Center (“AFNWC”) Raytheon Technologies Corporation $960.0 Frequency Terminal (“AEHF-T”) production and depot activation

AFLCMC contracts for AN/ALQ-172(V) electronic U.S. Air Force Life Cycle Management Center 8/31/2021 L3 Harris Technologies, Inc. $947.3 countermeasures system engineering and (“AFLCMC”) technical services

ACC-RSA mods contract for Limited Interim U.S. Army Contracting Command, Redstone Arsenal 8/24/2021 BAE Systems plc $843.9 Missile Warning System (“LIMWS”) quick (“ACC-RSA”) reaction capability life cycle contractor support

CMS contracts for part A/B Medicare 8/1/2021 Center for Medicare & Medicaid Services (“CMS”) Novitas Solutions, Inc. $669.3 Administrative Contractor (“MAC”) jurisdiction L

GSA FEDSIM task order under the Alliant 2 General Services Administration, Federal Systems 8/6/2021 Accenture Federal Services LLC $618.8 unrestricted contract for the U.S. Marshals’ Integration and Management Center (“GSA FEDSIM”) mission modernization program

U.S. Army Contracting Command, Redstone Arsenal ACC-RSA contracts for engineering services and 8/20/2021 The Boeing Company $487.0 (“ACC-RSA”) technical support for AH-64 Apache helicopters

AFLCMC contracts for for BQM-167 Skeeter Air U.S. Air Force Life Cycle Management Center 8/6/2021 Kratos Defense & Security Solutions, Inc. $338.1 Force Subscale Target (“AFSAT”) production (“AFLCMC”) lots 17-21

Source: DACIS / Infobase; data as of 8/31/2021; data sorted by reported contract ceiling size RAYMOND JAMES INVESTMENT BANKING 13 MARKET INTEL REPORT September 2021

INVESTMENT BANKING

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