AirBoss Defense Group is taking another giant step toward expanding its presence in the global military and health care markets while branching out further into non-military sectors.
A subsidiary of Newmarket, Ontario-based AirBoss of America Corp., ADG will acquire 100 percent of BlackBox Biometrics Inc., the developer and producer of the Blast Gauge System of lightweight wearable blast overpressure sensors used by the U.S. Army, special forces and SWAT teams.
AirBoss, which rode into 2021 with strong momentum thanks to record revenues in 2020, holds a minority interest in BlackBox Biometrics, called B3, and exclusive sales rights for the Blast Gauge System to the U.S. military.
B3 is a leading technology company focused on preserving health, transforming behavior and optimizing performance, ADG noted. Its sensor systems monitor, record and analyze blast and impact events to protect members of the military, first responders and athletes, it added.
Under an agreement between ADG and BlackBox, ADG will acquire B3 for up to $27 million, to be satisfied through $7 million in cash upon closing of the transaction and up to $20 million in royalties spread over eight years, based on revenues earned by ADG from B3 products.
The deal is subject to customary closing conditions and expected to be finalized during the second quarter.
Under terms of the agreement, ADG will acquire the entire BlackBox business, "which includes a plant and office in Rochester, N.Y., and a group of very talented employees who have developed, produced and sold the Blast Gauge along with other sensor related products," according to Chris Bitsakakis, president and chief operating officer of AirBoss.
He said there are no short-term plans to move B3's manufacturing in Rochester to AirBoss' production facilities in the U.S. and Canada.