#USA #Orlando #Lightpath #Amorphous Materials #Chalcogenide glass

Major Acquisition in the Optics Industry

In a significant move poised to reshape the optics market, LightPath Technologies, Inc. (NASDAQ: LPTH) has announced its acquisition of Amorphous Materials, Inc. (AMI) for $7 million in cash, along with potential technical milestone-based incentives amounting to $3 million. This strategic purchase is aimed at bolstering LightPath’s position in the burgeoning $9 billion infrared imaging sector.

Enhancing Capabilities in Infrared Solutions

Founded over 50 years ago by Dr. Ray Hilton Sr., AMI has established itself as a leader in the production of Chalcogenide glass, particularly important for large diameter optics crucial in defense and commercial applications. The acquisition will enhance the production capabilities of LightPath, enabling them to manufacture large optics essential for various applications, including satellite and space programs.

Why This Acquisition Matters

The strategic acquisition is designed to accelerate LightPath's vision of transitioning from a component provider to a comprehensive supplier of integrated infrared imaging solutions. With AMI's advanced glass melting technology, LightPath will be able to produce glass plates with diameters up to 17 inches, a significant upgrade from the previous limit of 5 inches. This leap will enhance their ability to supply larger, high-value optics to defense and commercial sectors.

Future Revenue Growth and Market Expansion

Following the acquisition, LightPath anticipates an additional $3 million in annual revenue, underscoring the financial benefit of this deal. A substantial portion of AMI’s revenue is sourced from a primary tier-1 defense customer, which indicates a stable revenue stream driven by long-standing contracts.

Operational Synergies

AMI's existing facilities will not only augment LightPath's glass melting capacity but will also establish a redundant manufacturing site in Texas. This is particularly crucial as it aligns with the NDAA (National Defense Authorization Act) compliance for defense-related products, ensuring that all new glass and optics will meet strict regulatory standards.

Perspectives from Leadership

Sam Rubin, LightPath’s President and CEO, expressed enthusiasm about the acquisition, stating, "This deal significantly strengthens our industry positioning and expands our glass supply chain while enabling us to transition toward being a fully integrated provider of infrared imaging subsystems and solutions. AMI's advanced manufacturing processes will augment our capabilities and expedite the readiness of our new glass products."

Conversely, Ray Hilton III, AMI's CEO, also conveyed optimism about the partnership, revealing mutual confidence that the combined strengths of both companies will lead to innovative and effective large optics solutions.

About LightPath Technologies

LightPath Technologies is renowned for its commitment to advancing optical systems utilized across various commercial and defense applications. Their extensive product line includes exclusive BlackDiamond™ chalcogenide-based glass materials available under license from the U.S. Naval Research Laboratory. With production facilities located in Florida, Texas, New Hampshire, Latvia, and China, LightPath continues to push the envelope in optics designed for thermal imaging systems.

Conclusion

The acquisition of AMI clearly signifies LightPath Technologies’ dedication to elevating its offerings within the optics industry as it steps forward into a new era of large diameter optics production. The anticipated market expansion and revenue growth from this strategic buy are expected to significantly benefit shareholders and foster innovation in infrared imaging technology.