Honeywell signed an agreement to acquire COM DEV International, a satellite and space components provider, for an aggregate purchase price of approximately C$455 million ($345 million).

COM DEV’s estimated 2015 revenue is approximately C$210 million ($160 million). On an adjusted basis, the purchase price translates to approximately ten times COM DEV’S estimated 2015 earnings before interest, tax, depreciation and amortization (EBITDA).

Honeywell is acquiring COM DEV’s electrical and optical components and subsystems equipment businesses. COM DEV will simultaneously spin-off its exactEarth subsidiary to current shareholders prior to closing.

The transaction will be principally funded with non-U.S. cash, and drive deal returns consistent with Honeywell’s acquisition framework. Pending government and shareholder approvals, the acquisition is expected to close by the end of the first quarter in 2016.

“COM DEV is a terrific fit for Honeywell, growing our existing space and connectivity businesses and expanding our global reach to new international customers,” said Honeywell Aerospace president and CEO, Tim Mahoney. “COM DEV’s differentiated technologies and strong position in the growing connectivity industry make the company an attractive addition to our business. We are equally excited about what we can bring to COM DEV, specifically our broad product portfolio, deep industry expertise and relationships, global sales force and brand, and our proven Honeywell Operating System. We are confident that all of our key processes and initiatives will be immediate differentiators for COM DEV.”