API Technologies to merge with rival

In a complex merger that will put Ronkonkoma-based API Technologies Corp. under the leadership of a private equity firm, all company officers and the entire board will resign and API will double in size by acquiring an upstate rival, API announced Monday evening.

API will combine with another defense contractor, SenDEC Corp., of Fairport. Leading the new combined company will be Brian Kahn, managing member of Vintage Capital Management of Orlando, Fla.

Kahn said Monday that the combined company will be more competitive in gaining U.S. Defense Department contracts and subcontracts. In the past 12 months the combined revenues of the companies totaled about $200 million.

"After the transaction API will continue operations in Ronkonkoma. This includes engineering, sales and administration," Tara Flynn Condon, marketing director for API, said in an e-mail Tuesday. "We do not anticipate that jobs will be moved or lost as a result of this transaction."

API employs about 30 people in Ronkonkoma and said it does not expect that the merger will affect its current company structure or operations on Long Island. "Overall, the transaction has provided a healthier balance sheet and effectively doubled the size of the company. We are now an even larger 'One Stop Shop' for defense industry customers, with more locations."

While API's corporate headquarters is in Ronkonkoma, it has major engineering and manufacturing plants in Windber, Pa.; Gloucester, England; and Kanata, Ontario, Canada. API's brand names and subsidiaries include Cryptek, Emanation Control Limited, Filtran, Islip Transformer & Metal, Keytronics, National Hybrid, Secure Systems & Technologies Ltd., and Sensonics and TM systems.

Among its products are naval aircraft launching and landing equipment, instrument panels for military aircraft, and telecommunications systems for highly classified information.

"API will acquire 100 percent of the equity of SenDEC . . . in exchange for the issuance of 22 million API common shares to an affiliate of Vintage," API said. As a result, Vintage will become majority stockholder in API. The transaction, unanimously approved by the boards of directors of API and SenDEC, is expected to close in a few days. The company will then apply for a listing on the Nasdaq.

Officials of Vintage Capital could not be reached for comment Tuesday.

Kahn will become chief executive and board chairman of API Technologies.