ARLINGTON, Texas, 26 Oct. 2005. VirTra Systems, Inc. today announced that it has signed a letter of intent to acquire three private electronics companies, Altatron, Inc., Dynalyst, Inc., and Suntech, Inc.
Under the terms of the anticipated definitive agreement, VirTra Systems will acquire the three companies in a stock-for-stock or merger transaction. Terms of the transaction were not disclosed. The agreement will be subject to a number of conditions, chiefly VirTra Systems' due diligence review and approval by its shareholders.
VirTra Systems sells situational awareness firearms training systems to military agencies such as the U.S. Air Force, Army, and Department of Defense, and to national and international law enforcement agencies. The company also produces multisensory promotional virtual reality systems and 3-D theaters for clients such as General Motors, Pennzoil, Red Baron Pizza, and the U.S. Army. For more information, see www.virtra.com.
In addition to vertical integration of components required for VirTra Systems' IVR simulators, the acquisition would bring valuable ISO qualifications and such customers as L-3 Communications, Intel, AMD, and Motorola.
"We are highly energized over this merger, as it completes this stage of the reorganization of our company," said L. Kelly Jones, VirTra Systems' CEO. Under the agreement, Jones will remain as chief executive officer of the combined company.
"This acquisition fosters vertical integration for our IVR simulator components, allowing us to keep more of our production in-house, and also provides expansion into related high-technology electronics markets. Further, with these three divisions' projected 2006 revenue exceeding $30,000,000, this acquisition brings financial critical mass enabling us to obtain greater market reach and managerial support, while achieving significant economies of scale."
Altatron is an ISO 9001:2000 original equipment manufacturer in the telecommunications, networking, computer, consumer electronics, and medical devices industry. For more information, see www.altatronems.com.
Dynalyst is a boutique company focusing on extremely high-end PCB design engineering and fabrication for the semiconductor industry. For more information, see www.dynalyst.com.
Suntech is also an ISO-certified company delivering customized electronic components, primarily electronic printed circuit boards, with physical presences in Taiwan, Hong Kong, and China. For more information, see www.suntechcircuits.com.
"We have been following VTSI for some time, particularly its technological lead in the training/simulation industry," commented Daniel "Bo" Lee Ritz, Jr., Altatron's and Dynalyst's chairman. "With VirTra Systems poised to dramatically expand its market position, we are excited to bring our world- class technological facilities, cash flow, and managerial experience to VirTra Systems, creating a company with unparalleled technology and business development opportunities."
"We at Suntech are pleased to participate in this transaction," commented Errol Melville, Suntech's CEO. "The synergies of the combined company open new business growth opportunities allowing us to more effectively compete on a global scale."
