NEOTech Completes Acquisition of Virtex

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NEOTech, a portfolio company of Arkview Capital,  announced the acquisition of Virtex, a U.S.-based provider of high-reliability electronic manufacturing services focused primarily on the defense market. Terms of the transaction were not disclosed.

Virtex operates five facilities across the United States and provides end-to-end electronics manufacturing solutions, including engineering and testing, supply chain management, printed circuit board assembly, cable and harness assembly, full-system integration, direct-order fulfillment, and aftermarket support. The combined company will operate eleven facilities with over 2,500 employees.

The combination expands NEOTech’s domestic manufacturing base, broadens its engineering and production capabilities, and enhances its ability to support defense customers across the full product lifecycle, from design and prototyping through production, fulfillment, and ongoing lifecycle support.

“Virtex is a highly respected company with a talented team, strong customer relationships, and differentiated capabilities across some of the most demanding end markets,” said Pavel Chernyshov, Co-Founder of Arkview Capital. “This acquisition represents an important step in our strategy to build NEOTech into a large-scale manufacturing partner for our defense customers who rely on us to produce mission-critical products with exceptional quality and technical sophistication. We are excited to welcome the Virtex team and support the combined organization’s continued growth.”

The addition of Virtex further strengthens NEOTech’s position in complex, low-to-medium-volume, high-mix electronic manufacturing, and provides customers an ITAR-registered domestic manufacturing footprint backed by a resilient supply chain.

“We saw a strong strategic fit between NEOTech and Virtex,” said Frank Crocker, Principal at Arkview Capital. “The businesses serve similar defense customers and share a focus on complex manufacturing for products that cannot fail. Our customers gain more capacity and a broader set of capabilities without sacrificing the responsiveness that is critical in today’s market.”

NEOTech will continue to invest across the combined organization in advanced manufacturing technologies, engineering expertise, quality systems, supply chain capabilities, and employee development.

“Virtex brings an experienced team, a strong domestic manufacturing network, an attractive customer base, and key capabilities that align closely with NEOTech’s existing operations and long-term strategy,” said Courtney Ryan, an executive board member of NEOTech. “We look forward to bringing our teams together thoughtfully and building a stronger, more diversified organization. Our priorities will remain disciplined execution, operational transparency, and providing our customers with the quality, responsiveness, and reliability they expect from us.”

Arkview was advised by Sheppard Mullin on legal M&A matters, Greenberg Traurig on legal financing matters, Virtas Partners on financial due diligence, and RSM on tax-related analysis.

Acquisition financing was provided by a consortium of existing lenders, including PNC Bank, Crestline Investors, and Canyon Partners.

Lincoln International served as financial advisor to Virtex. Alston & Bird served as M&A counsel.