$60 million IPO targets security and defense space

Thursday, May 3, 2007

RIDGEFIELD, N.J.--Following a successful initial public offering May 2 that raised $60 million, Vector Intersect Security Acquisition Corp. is officially the newest player in the security and defense space. A "blank check" company, Vector Intersect doesn't actually do anything yet, but is under mandate to acquire a company working in either the homeland security or defense sector in the next 18 months.
Chief executive officer and president Yaron Eitan said Vector Intersect is now looking for a "sizable company that has growth potential, a company that we can help." He cited a "very impressive board of directors, connected in the industry all over the world" and his own experience as "founder and CEO of a couple of companies in the defense and security space" as evidence of the new Vector Intersect's ability to "really make a difference when making an acquisition."
Eitan was chief executive of Geotek Communications, a wireless technology company, from 1989 to 1998, and is currently a director of digital asset management firm Clearstory Systems. The board includes former Israeli prime minister Ehud Barak, who was also head of the Israeli intelligence community and chief of the general staff of the Isreal Defense forces; Admiral (Ret.) Archie Clemins, who was commander in chief of the U.S. Pacific Fleet in the U.S. Navy; and Joseph Gorman, who serves on the boards of Alcoa and Proctor & Gamble.
Eitan suspected the acquisition would either be a division of a large corporation that might not fit into their long-term strategy, "or a privately held company that needs expansion capital ... by selling to us, it's essentially an IPO for them." He noted they could also merge with a larger company looking for capital; "at the end of the day, our shareholders do not have to be the majority owners of the merged company."
Asked to speculate more specifically about what the targeted company might do in which industry, Eitan said technology and services companies in both the homeland security and defense industries were fair game, "except the defense industry is much larger," so it may be that's where Vector Intersect will wind up.