Cyalume Technologies Holdings, Inc. recently announced the acquisition of Combat Training Solutions, Inc. The acquisition was obtained via a $1 million consideration split equally between cash and stock, and includes an earn-out based on 2012 and 2013 performance.
Cyalume is focused on chemical light, or chemiluminescent technology, and is the sole supplier of chemical light products to the U.S. and NATO-country militaries. Cyalume has manufacturing facilities in the United States and France. Cyalume products provide dependable lighting solutions military training and battlefield scenarios, as well as for safety and emergency situations. The company also has partnerships with Rheinmetall Waffe Munition, GmbH, General Dynamics and Fiocchi Ammunition. CTS, based in Colorado, manufactures training simulation devices and accessories for military and law enforcement professionals. CTS is expected to generate in excess of $3.4 million of revenue and $0.5 million of EBITDA in 2011.
The goal of the merger is for the companies to develop products that simulate non-pyrotechnic explosions for training purposes, as well as other products that integrate Cyalume’s chemiluminescent technology. As Cyalume will now have access to CTS’ customer base, the company will be in a better position to market its chemiluminescent technology to military and law enforcement organizations.
Derek Dunaway, president and CEO of Cyalume, said, “We are very excited to join forces with Tony Colon and his team at CTS to form a leading, non-pyrotechnic battlefield training and tactical solutions provider. With CTS as our partner, we will be able to expand and leverage the applications we have developed for non-pyrotechnic munitions into the broader training and simulation market. The CTS acquisition represents an extension and acceleration of Cyalume’s strategy to bring our technology into a wide array of products that allow for safer yet still highly realistic training to our armed forces.”
Tony Colon, president and CEO of CTS, said, “This transaction represents a landmark opportunity for CTS to gain access to the resources necessary to capture the emerging opportunities that we are seeing in the global battlefield simulation training market. The combined organizations’ technology platform and sales channels will ensure that we are well-positioned for continued growth.”
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