Aerotech, a provider of defense and security products, said the initial acquisition price of UEC was $28 million in cash and 775,000 shares of Arotech's common stock, plus a potential earn-out of $5.5 million over the next two calendar years.
"UEC is a highly complementary business to our Battery and Power Systems Division,” said Robert S. Ehrlich, Arotech's chairman and chief executive officer. “The combination opens up many new market opportunities for us as a combined entity. UEC brings us significant electronic engineering and manufacturing skills which combines very well with our expertise in military and commercial grade battery technology and management systems.
“In addition, we see very strong sales and marketing synergies as well as the potential to make efficient use of shared resources."
UEC develops and manufactures electronic components and subsystems primarily for military, aerospace and industrial customers. It specializes in areas such as hybrid power generation systems, smart power sub-systems and aircraft and missile systems support. Among its clients are the U.S. military services and prime contractors.
“This strategic alignment will provide UEC with access to capital required to scale our existing infrastructure for larger programs and requirements, as well as to increase distribution channels for UEC OEM products, “UEC President Rebecca Ufkes said. “Arotech is an innovative and agile corporation with a strong technical team and an unwavering commitment to engineering development and manufacturing excellence. Our company visions and cultures are very much aligned and create a model for collaboration and success."