Cubic Corporation

Veritas Capital, a New York-based private equity firm focused on defense and government services, acquired Cubic for $2.35B in May 2021 (per Veritas Capital, May 2021). The Zable family trust and public shareholders exited in the all-cash $75.81 per share transaction. Cubic is now a private subsidiary of Veritas Capital.

Cubic operates through two segments: Cubic Mission Solutions, which provides military training, communications, and defense electronics; and Cubic Transportation Systems, which supplies automated fare collection and traffic management systems. The defense segment is the larger revenue generator, with recurring contracts from the US Department of Defense.

The Zable family, led by founder Walter J. Zable and later his son William J. Zable, previously controlled a majority voting stake through a trust. After the 2021 acquisition by Veritas Capital, the family sold its shares and no longer holds a controlling interest. William J. Zable left the board at closing.

Cubic wins both fixed-price and cost-plus government contracts, primarily with the US Department of Defense and state transportation departments. Its transportation segment often enters long-term concessions or public-private partnerships (P3s) for fare collection system deployments. The defense segment competes for large-scale training and simulation programs.

Cubic has a rare dual profile — it is simultaneously a top-100 US defense contractor and a global transit technology provider. Most defense contractors lack transportation expertise; most transit tech firms lack DoD relationships. This hybrid was central to the Veritas acquisition thesis of revenue diversification.