API Nanotronics Corp.
(OTCBB: APIA) ("API" or the "Company"), a leading supplier
of electronic systems and sub-systems, components, nano-optics and nanotechnology
products to the aerospace, defense and communications sectors, today announced
the acquisition of substantially all of the operating assets of Cryptek Technologies.
Cryptek offers customers a variety 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 industry leading offerings are sold
to governments and other international organizations that require the highest
possible level of security in the areas of identity validation, network access
management, TEMPEST network intrusion prevention, and secure and encrypted fax,
computers and telephones. As a global business with operations in the United
States, Canada and the UK, Cryptek counts some of the world's largest military,
government and intelligence agencies as customers.
The Cryptek acquisition was completed as an all-cash transaction with proceeds
from corporate funds and a private placement. Cryptek's consolidated revenues
for fiscal 2008 were in excess of $30 million. Management expects this acquisition
to be significantly accretive to earnings.
As part of API, these businesses will operate as the newly formed API Cryptek
Inc. Mr. William Anderson will serve as president of API Cryptek. Mr. Anderson
was CEO of Cryptek from 2005-2008 and was instrumental in growing Cryptek into
a leader in its industry, generating in excess of $30 million in annual revenue.
In his role as President of API Cryptek, Mr. Anderson will report directly to
Stephen Pudles, CEO of API. API has retained the majority of Cryptek's employees
and expects no disruption in business operations.
Management considers this acquisition highly synergistic as 80-90% of both
company's revenues are derived from government and military customers and there
are tremendous opportunities to cross market API's broad networking and communications
product offerings. This is regarded as the initial transaction in a larger strategic
plan to position API as a leading global military supplier and customer solutions
technology company. This acquisition moves API upstream as a top-tier designer
and manufacturer of systems and subsystems for some of the world's largest companies
and government agencies. As a significantly larger company, API will continue
to pursue complimentary acquisitions and accelerate internal product development.
Stephen B. Pudles, Chief Executive Officer of API Nanotronics Inc., said, "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., said, "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