Global ePoint, a leading manufacturer of security technologies for the aviation, military, law enforcement, industrial and commercial markets, announced today that it has entered into a non-binding letter of intent to acquire Astrophysics, Inc.(www.astrophysicsinc.com), a leading developer and manufacturer of x-ray scanning security systems. The deal will enable the company to enter the multi billion dollar X-ray security market. The acquisition is subject to customary closing conditions, including satisfactory financing and shareholder approval. Global ePoint expects to finalize the definitive agreement within the next 30 days. The acquisition is expected to be completed in the third quarter.
Under the terms of letter of intent, Astrophysics will receive $10 million in cash and 50.1% of the outstanding Global ePoint common stock and options. Astrophysics has proprietary x-ray scanning technology that can be used for baggage inspection, scanning of air cargo and sea containers to detect explosives and other hazardous materials. Astrophysics introduced its technologically advanced detection systems to the market over two years ago. It has since achieved worldwide acceptance and continuously increases their customer base. Astrophysics has hundreds of installations in numerous countries worldwide.
Astrophysics is developing the next generation of x-ray security detection systems and is working closely with the US Transportation Security Administration to meet anticipated new and more stringent detection requirements for Homeland Defense. In the past, Astrophysics' founder, Francois Zayek performed numerous research and development projects that received multi-million dollar funding from the FAA and the DOD relating to X-ray imaging and detection.
"The acquisition of Astrophysics marks the next step in our strategy to become a leading security technology company," said Global ePoint CEO, Toresa Lou. "We are excited to add to our capabilities, not only through Astrophysics' strong backlog of existing business but also the technology prowess of Astrophysics' founder, Francios Zayek, who is widely respected in the industry. Global ePoint's proven design, manufacturing and marketing expertise combined with Astrophysics' technology will create powerful synergies among our respective customer bases."
"We are excited to join the Global ePoint team," said Mr. Zayek. "In just a short period of time, the company has built a solid base of customers in the digital video security marketplace particularly in the airline industry. We expect that there will be significant opportunities to market our technology to their customer base, and that many of our customers could deploy Global ePoint's digital video security solutions . We look forward to working with the Global ePoint team to further penetrate this rapidly growing market."
The security market is one of the fastest growing areas of the US economy today. Due to the events of September 11th, 2001, the US Government has increased security spending to secure the ports, borders, and airports on US soil through the Department of Homeland Defense. One of the major issues facing the country's homeland defense has been cargo container screening. There are over 200 million cargo containers transported between major seaports around the globe and over 16 million of those containers enter the U.S. Another 118 million passenger vehicles cross the US border annually.
Astrophysics delivers turnkey x-ray inspection systems to customers worldwide for use at airports, government buildings, customs, banks, courthouses, hospitals, prisons and many other locations. Astrophysics' technology teams have developed leading proprietary products in baggage and cargo inspection.