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LightPath Technologies has executed a definitive agreement to acquire ISP Optics Corporation for $18 million, of which $12 million will be payable in cash with the balance in the form of a note issued to the sellers. Headquartered in New York State and with major manufacturing operations in Latvia, ISP is a premier manufacturer of advanced infrared optical components, coatings, and optical sub-systems.

In 2015, ISP generated, on a consolidated basis, $12.1 million of revenue, $1.5 million of net income and $3.1 million of adjusted Earnings Before Interest, Taxes, Depreciation and Amortization. LightPath plans to finance the cash portion of the purchase price through a combination of the offering and issuance of LightPath's common stock and debt financing. Upon closing, ISP will become a wholly-owned subsidiary of LightPath. LightPath expects the transaction to be accretive during the first 12 months.

Acquisition Highlights

• Combines two fast-growing high technology infrared and optical product pioneers to establish a premier, global, leading-edge industrial technology company.
• Combines LightPath's high-volume molding technology with ISP's high-value diamond turning, coatings and polishing capabilities.
• ISP's primary vertical markets are infrared lenses for sensors, military electro-optical products and infrared imaging cameras.
• ISP's 2015 consolidated revenues grew 17% year-over-year, and adjusted EBITDA was 25.7%
• The ISP business broadens LightPath's global customer base significantly with nominal overlap.
• Expands LightPath's market reach to include major operations in Asia, North America and now Europe with ISP's Latvian operation.
• Generates significant synergies through cross-selling of products, expanded product offerings, greater production and assembly capabilities as well as material processing capabilities.
• Expands LightPath's served available market (SAM) to $1.7 billion from $800 million.