Ultralife Batteries acquires ISC
Ultralife Batteries will acquire all of the outstanding shares of Innovative Solutions Consulting (ISC), an engineering and technical services company located in Hollywood, Maryland, for approximately $3 million. The acquisition is expected to close by the end of September. Established in 1999, ISC is an engineering and technical services firm specializing in the design, integration, and fielding of mobile, modular, and fixed-site communication and electronic systems. In 2006, ISC generated approximately $4 million in revenue. Under the terms of the agreement, the purchase price will consist of $1 million in cash and an earn-out totaling up to $2 million to be paid over three years based on exceeding certain agreed-upon annual sales measures.
The company plans to finance the transaction with operating cash and available credit. Management anticipates that the transaction will be accretive in 2008. For the six-month period ended June 30, 2007, Ultralife`s revenues totaled $67.5 million. Net income for the first half of 2007 was $1.3 million.