API Nanotronics Corp., a leading supplier of electronic systems and sub-systems, components, nano-optics and nanotechnology products to the aerospace, defense and communications sectors, announced that it has acquired substantially all of the operating assets of Cryptek Technologies. The acquisition doubles the size of API Nanotronics and establishes the company as a worldwide leader in secure technologies for global military, government and intelligence agencies.
Cryptek provides an assortment of ‘ultra’ secure network and hardware solutions including Emanation Security, TEMPEST and secure network access under the ION, EMCON, SST and Netgard brand names. These solutions are sold to governments and other international organizations that need the highest security in the areas of identity validation, network access management, TEMPEST network intrusion prevention, and secure fax, computers and telephones. With operations in the United States, Canada and the UK, the company has attracted some of the world’s largest military, government and intelligence agencies.
According to the press release, the acquisition was paid for in an all-cash transaction with proceeds from corporate funds and a private placement. Cryptek’s consolidated revenues exceeded $30 million last year and management expects this acquisition to be significantly accretive to earnings. API’s management team believes the acquisition will be highly synergistic as 80-90% of both company’s revenues are derived from government and military customers, creating tremendous opportunities to cross market API’s broad networking and communications product offerings.
Stephen B. Pudles, Chief Executive Officer of API Nanotronics Inc., stated, “This is a tremendous acquisition for API’s customers, shareholders and employees. As part of API we believe Cryptek’s assets will quickly generate growth and significant profitability. As a larger company generating significant cashflows, API will be in a strong position to support internal product development in a variety of new areas.”
William Anderson, President of API Cryptek Inc., commented, “I am extremely excited about the opportunity to lead API Cryptek through a new phase of growth with the support of a strong parent company like API Nanotronics. I believe this is a very powerful combination and decidedly positive for our employees and customers.”
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