Message #39 From:
TheMachine Date: February 24, 2008 01:32:40 PM
Arotech Training & Simulation Division Announces Acquisition of Realtime Technologies, Inc. for $1,350,000 Arotech Corporation
(NASDAQ: ARTX) announced
today that its Training and Simulation Division has acquired Realtime
Technologies, Inc. (RTI), a privately-owned corporation headquartered in
Royal Oak, Michigan, close to the headquarters of the rest of Arotech's
Training and Simulation Division. Since its founding in 1998, RTI has
specialized in multi-body vehicle dynamics modeling and graphical
simulation solutions. RTI offers simulation software applications,
consulting services, custom engineering solutions, and software and
hardware development. The purchase price is $1,350,000 ($1,250,000 in cash
and $100,000 in stock) with a 2008 earn-out (maximum of $250,000) based on
2008 net profit.
RTI's 2007 revenues (unaudited) totaled over $1.6 million with a net profit
of $200,000. Richard Romano, RTI's President, will remain with the company
and continue to manage RTI as a wholly-owned subsidiary of FAAC
Incorporated. The cash portion of the transaction is being financed using
FAAC's working capital.
RTI has delivered software and engineering solutions to a large number of
major ground vehicle simulator developers. This includes extensive
consulting and development support to the US Army TACOM. RTI is also the
producer of SimCreator -- a graphical, hierarchical, real time simulation
and modeling system enabling users to develop distributed simulation models
with speed and ease. RTI's customer base includes university researchers
throughout the U.S. and Canada, international, government and private
entities. Founded in 1998, RTI is based in Royal Oak, Mich., and has
satellite offices in Lafayette, Colo., and South Jordan, Utah.
"RTI will not only be additive to our revenues and profitability but, just
as importantly, will expand our organizational simulation experience," said
Robert S. Ehrlich, Arotech's Chairman and CEO. "This acquisition represents
logical growth of our simulation capabilities to include sophisticated
engineering level solutions."
"Arotech Training and Simulation is excited to add Realtime Technologies to
our existing simulation companies, FAAC and IES," said Dean Krutty, Arotech
Training & Simulation President. "RTI's rich product portfolio will provide
us with the opportunity to economically add new features to the many driver
training products that FAAC sells while we combine research and development
innovations benefiting both companies. At the same time, RTI will
immediately gain a much broader market exposure and the resources needed to
continue its growth."
Arotech's Training and Simulation Division (ATSD) provides world class
simulation based training solutions. ATSD develops, manufactures, and
markets advanced high-tech multimedia and interactive digital solutions for
engineering, use-of-force, and driver training simulations for military,
law enforcement, security, municipal and private industry personnel. The
division's fully interactive driver-training systems feature
state-of-the-art vehicle simulator technology enabling training in
situation awareness, risk analysis and decision-making, emergency reaction
and avoidance procedures, and conscientious equipment operation. The
division's
use-of-force training products and services allow organizations to train
their personnel in safe, productive, and realistic environments. The
division provides consulting and developmental support for engineering
simulation solutions. The division also supplies pilot decision-making
support software for the F-15, F-16, F-18, and JSF aircraft, as well as
simulation models for the ACMI/TACTS air combat training ranges.
Arotech Corporation is a leading provider of quality defense and security
products for the military, law enforcement and homeland security markets,
including multimedia interactive simulators/trainers, lightweight armoring
and advanced zinc-air and lithium batteries and chargers. Arotech operates
through three major business divisions: Training and Simulation, Armor, and
Battery and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann Arbor,
Michigan, and research, development and production subsidiaries in Alabama,
Michigan, and Israel. For more information on Arotech, please visit
Arotech's website at www.arotech.com.
Except for the historical information herein, the matters discussed in this
news release include forward-looking statements, as defined in the Private
Securities Litigation Reform Act of 1995, including the results of our
restructuring program. Forward-looking statements reflect management's
current knowledge, assumptions, judgment and expectations regarding future
performance or events. Although management believes that the expectations
reflected in such statements are reasonable, readers are cautioned not to
place undue reliance on these forward-looking statements, as they are
subject to various risks and uncertainties that may cause actual results to
vary materially. These risks and uncertainties include, but are not limited
to, risks relating to: product and technology development; the uncertainty
of the market for Arotech's products; changing economic conditions; delay,
cancellation or non-renewal, in whole or in part, of contracts or of
purchase orders; and other risk factors detailed in Arotech's most recent
Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as
amended, and other filings with the Securities and Exchange Commission.
Arotech assumes no obligation to update the information in this release.
Reference to the Company's website above does not constitute incorporation
of any of the information thereon into this press release.
For more information on Arotech or investor and public relations, please
contact:
Victor Allgeier TTC Group
1.646.290.6400 Email Contact
Source: Marketwire (February 19, 2008 - 8:00 AM EST)
