By GREGORY ZELLER //
Reality check: A Farmingdale-based tech firm is reinforcing a lucrative virtual vertical with a big push into VR.
International tech manufacturer and distributor Cemtrex Inc. announced Monday that it has signed a letter of intent to acquire a New York City-based virtual-reality software-development firm.
While it has revealed some clues as to the target company’s identity – it was founded in 2010, employs more than 30 programmers and boasts annual sales north of $1.5 million – Cemtrex is not naming names until the burgeoning deal is complete. Terms of the takeover offer were not disclosed.
When the deal is done, the Farmingdale firm – which was named in October to Crain’s New York Business’ list of the NYC area’s 50 fastest-growing companies – will welcome a software studio with an established mechanism for creating augmented-reality and virtual-reality software solutions, covering a range of uses from gaming to training simulations to product prototyping.
It’s a potentially enormous forward leap into a VR industry that Cemtrex projects will eclipse $500 billion in annual revenues by 2025.
Referencing the launch of the Cemtrex Advanced Electronics subsidiary this summer, Chairman and Chief Executive Officer Saagar Govil noted his company has gone all-in on “the development of advanced electronic products” – and said the addition of the Big Apple-based VR firm would add “comprehensive software-development capabilities” to the mix.
“This software studio’s experienced workforce has extensive expertise over VR and AR software development for wide applications of products and solutions,” Govil said Monday. “Many of our existing customers who rely on us for hardware expertise look to us to provide software solutions, and through this acquisition we will be able to meet this growing demand in the future.”
Cemtrex has been on a bit of a buying spree lately. In September, the company announced an exchange offer to acquire Washington State-based electronics-manufacturing services provider Key Tronic Corp – the first step in a larger play to acquire all of the 45-year-old Key Tronic’s assets.
With that takeover effort still pending, the Farmingdale firm said it expects to close on the acquisition of the NYC software firm before the end of the 2017 calendar year.
“We have focused on positioning Cemtrex into cutting-edge technologies that will be at the forefront of our daily lives in the coming decade,” Govil said. “The acquisition of this software studio shall provide tremendous global opportunities for our company in this newly emerging market.”