FOLSOM, Calif., Aug. 22 (UPI) -- Battlefield arms manufacturer Airtronic USA Inc. has entered negotiations over its possible takeover by Global Digital Solutions Inc.
The exclusive agreement for the intended sale is subject to due diligence reviews by both companies and other conditions, including agreement by the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division.
Airtronic is a "debtor" under Chapter 11 of the U.S. Bankruptcy Code.
If the transaction if successfully completed, Airtronic will operate as a subsidiary of GDSI, a security consultancy and solutions company.
"This proposed strategic acquisition is extremely exciting for both GDSI and Airtronic," said GDSI founder and largest shareholder Richard J. Sullivan, who will become non-executive chairman of GDSI after the acquisition is completed.
"I'm looking forward to finalizing all necessary approvals and working with Dr. Merriellyn Kett and the entire Airtronic team going forward. Airtronic has a great track record of manufacturing essential battlefield weapons for the United States and our allies and is well-connected with key agencies in the U.S. and around the world.
"Working together, I believe GDSI and Airtronic will be a very powerful combination that fits perfectly into GDSI's evolving strategy to become a leader in knowledge-based consulting and security-related solutions in unsettled, complex areas," he said.
Airtronic is a woman-owned company and the maker of the MK 777 shoulder-fired recoilless rifle, the M203 grenade launcher and other weapons used by the U.S. military.
