Britain’s Chemring Group PLC this week said it has conditionally agreed to acquire Non-Intrusive Inspection Technology, Inc. (NIITEK) for $30 million in a deal that would further expand its presence in the United States and position it in the mine detection technology market.
Terms of the deal include additional consideration of up to $10 million for a working capital adjustment and performance payments. The performance payments are contingent on NIITEK securing a significant production order for its first product and its three key members of its management team remaining with the business for at least two years post- acqusition, Chemring said.
NIITEK, based in Northern Virginia, has been focused on the research and development of its ground penetrating radar and metal detection technologies for counter-mine and route clearance operations. The company’s VISOR Ground Penetrating Radar technology is installed on vehicles and robots and has been through a successful operational deployment with the U.S. Army.
Chemring said that NIITEK’s technology is becoming increasingly important given the need for more counter-mine and route clearance operations used in modern peace-keeping missions.
“This incremental acquisition is another important element in the development of our Explosive Ordnance Disposal business,” David Price, Chemring’s CEO, said in a statement.
Chemring’s two main business areas are countermeasures–expendable decoys and obscurants–and energetics. Its energetics includes bomb disposal, fuzes, battlefield effects simulators and a host of other products.
Chemring had about $439 million in sales last year. So far this year, the company has already concluded several acquisitions of U.S. defense firms, including the purchase of Titan Dynamics Systems from Allied Defense Group [ADG], Scot, Inc. from SMS Industries, and Martin Electronics, Inc.