Cubic Corp. said on Dec. 16 that it acquired DTECH LABS Inc., a Virginia company specializing in radio technology for military, government and commercial customers, for as much as $114.5 million. The sum includes $15 million of contingent consideration.

“DTECH is the first step in our near-term strategy to build a niche $100 million-$200 million C4ISR business generating mid-teen EBITDA margins,” said Brad Feldmann, CEO of Kearny Mesa-based Cubic (NYSE: CUB), which reported sales of $1.4 billion in fiscal 2014. “DTECH represents a value investment and adds networking capability to our secure communications business.”

In military electronics lingo, C4ISR stands for command, control, communications, computers, intelligence, surveillance and reconnaissance. EBITDA is a financial term referring to earnings before interest, taxes, depreciation and amortization.

Cubic said the acquisition would be accretive to earnings beginning in fiscal 2016.

Based in Sterling, Va., outside Washington, D.C., DTECH LABS specializes in modular networking and baseband communications equipment, and counts the U.S. Special Operations Command as a client.