Cemtrex signs LOIs to acquire two US businesses in strategic expansion

NEW YORK - Cemtrex Inc. (NASDAQ:CETX), a technology company with current revenue of $76.1 million and market capitalization of $6.67 million, announced Monday it has signed non-binding letters of intent to acquire two profitable U.S.-based businesses in industrial robotics integration and aerospace and defense systems engineering. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The two companies are expected to contribute between $15-18 million in annual revenue and $2.5-3 million in operating income once the acquisitions are closed and integrated, according to a company press release.

The robotics integrator specializes in automation systems for agriculture and construction, which would complement Cemtrex’s Advanced Industrial Services division. The aerospace and defense firm provides communications and electronics systems for government and commercial customers.

Saagar Govil, Chairman and CEO of Cemtrex, said these potential acquisitions align with the company’s long-term strategy to expand into high-value markets.

Combined with organic growth initiatives, these acquisitions are expected to position Cemtrex to reach $100 million in total revenue and expand its operating profit, the company stated.

Both transactions remain in the due diligence phase and are subject to definitive agreements and customary closing conditions. The closings are expected to occur in the fourth quarter of 2025.

Cemtrex, a diversified technology company operating in security and industrial sectors, provides video management software and surveillance solutions through its Vicon Industries segment, while its industrial segment delivers rigging, millwrighting, and equipment installation services to manufacturers.

In other recent news, Cemtrex Inc. reported $2.3 million in operating income for the first half of fiscal 2025, with revenue reaching $41 million, marking a 20% year-over-year increase. This growth has been largely driven by the performance of its Vicon Security business. Vicon Industries, a subsidiary of Cemtrex, secured a significant order exceeding $500,000 from a Kentucky school district for its NEXT Modular Sensor System, which includes over 550 camera sensors to be deployed across multiple campuses. Additionally, Vicon received a follow-on order exceeding $1.2 million from a major Midwestern county government for a security upgrade project, highlighting its recent success in the public sector.

Moreover, Cemtrex has shifted its focus towards acquisitions after reaching profitability, aiming to sustain its growth momentum. The company also announced its return to compliance with Nasdaq’s stockholders’ equity requirements, following a previous warning earlier in the year. The Nasdaq Listing Qualifications Department confirmed that Cemtrex now meets the necessary equity standards for continued listing. These developments reflect Cemtrex’s ongoing efforts to strengthen its market position and financial stability.

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