Strategic Buyouts in the Defense Tech Sector: Analyzing the Narda-MITEQ Transaction

The defense technology sector has long been a magnet for private equity firms seeking to capitalize on the dual forces of geopolitical uncertainty and technological innovation. In 2025, the acquisition of Narda-MITEQ by Amphenol Corporation epitomizes how private equity is reshaping the RF/microwave component industry to secure long-term gains in defense modernization. This case study offers a window into the broader playbook of private equity: not merely acquiring assets, but transforming them into engines of growth aligned with national security priorities.

The Narda-MITEQ Turnaround: A Blueprint for Strategic Value Creation

Narda-MITEQ, a manufacturer of advanced radiofrequency (RF) and microwave components, was acquired in 2021 by J.F. Lehman & Company (JFLCO), a private equity firm with deep expertise in aerospace, defense, and maritime sectors. At the time, the company operated three facilities across three countries but faced stagnation in its product portfolio and market reach. JFLCO's approach was surgical: it replaced the leadership team with Bob Tavares, a seasoned executive, and prioritized R&D, sales, and strategic acquisitions.

The firm's first move was to acquire Intelligent RF Solutions, a smaller firm, to expand Narda-MITEQ's offerings in high-frequency interconnect solutions. This vertical integration allowed the company to address emerging demands in radar, satellite communication, and electronic warfare—sectors where defense budgets are surging. By 2025, Narda-MITEQ's annual sales had reached $120 million, positioning it as a compelling target for Amphenol, a global leader in interconnect solutions.

Private Equity's Role in Defense Modernization

The Narda-MITEQ transaction underscores a broader trend: private equity firms are increasingly acting as midwives for defense technology. Unlike traditional industrial conglomerates, PE firms like JFLCO bring operational discipline and sector-specific expertise to niche markets. Their ability to identify undervalued assets and restructure them for growth is critical in an industry where government contracts and technological obsolescence create high barriers to entry.

JFLCO's strategy with Narda-MITEQ was not just about cost-cutting but about aligning the company with defense modernization priorities. The firm's emphasis on R&D and product diversification mirrored the U.S. Department of Defense's push for resilient supply chains and next-generation capabilities. This alignment proved lucrative: Amphenol's acquisition in May 2025 added Narda-MITEQ to its Harsh Environment Solutions Segment, a division already benefiting from the global shift toward autonomous systems and 5G-enabled warfare.

Why This Matters for Investors

For investors, the Narda-MITEQ case highlights two key insights. First, private equity's role in the defense sector is evolving from passive ownership to active value creation. Firms like JFLCO are not merely holding companies but are deploying capital to address gaps in the defense industrial base. Second, the RF/microwave component industry is a microcosm of a larger shift: as militaries modernize, demand for specialized components in areas like AI-driven sensors and secure communications will outpace general industrial growth.

The financial terms of Amphenol's acquisition remain undisclosed, but the transaction's strategic fit is evident. Narda-MITEQ's $120 million in annual sales may seem modest, but its expertise in active RF interconnects—a critical enabler for fifth-generation fighter jets and satellite networks—gives Amphenol a competitive edge. This acquisition aligns with Amphenol's broader strategy of acquiring high-technology interconnect firms, a trend that has historically driven its double-digit revenue growth.

The Road Ahead

The Narda-MITEQ transaction is a harbinger of what's to come. As governments worldwide increase defense spending—projected to exceed $2.5 trillion annually by 2030—private equity will continue to play a pivotal role in reshaping supply chains. Investors should focus on firms that combine PE-driven operational rigor with deep sector knowledge, particularly in areas like RF components, cybersecurity, and autonomous systems.

For Amphenol, the acquisition of Narda-MITEQ is more than a financial play; it's a bet on the future of warfare. For JFLCO, it's a testament to the power of strategic buyouts in a sector where national security and market forces converge. As the defense tech industry continues to evolve, such transactions will define the next era of industrial growth—and investors who recognize their value will be well-positioned to benefit.

Investment Takeaway: Consider adding exposure to defense-focused private equity funds or publicly traded companies like Amphenol (NYSE: APH) that are actively acquiring niche technologies. Prioritize firms with strong ties to modernization programs and a track record of integrating acquisitions into cohesive product ecosystems. In an age of geopolitical risk and technological disruption, the defense sector offers both stability and upside for those who know where to look.