Its a Done Deal – A Cool $10 Million for Smith & Wesson to Close Gemtech

Its a Done Deal – A Cool $10 Million for Smith & Wesson to Close Gemtech

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Its a Done Deal – A Cool $10 Million for Smith & Wesson to Close Gemtech

Smith & Wesson continues to press on all fronts, expanding on all fronts under its new publicly traded name – American Outdoor Brands Corporation. Seeking to expand from its firearms roots, Smith & Wesson has been pushing into its namesake – the outdoors. Various companies owned by AOBC focus on true recreational products, not just boomsticks.

But, Smith & Wesson itself does stay closer to firearms. Announced earlier on July 15th, Smith & Wesson planned to acquire Gemini Technologies (also known as “Gemtech”). On August 9th, the same was announced as formally completed with a few details on the transaction, including the purchase price of $10 million.

Interestingly, the press release indicated that not all of the assets were purchased. Press Releases are typically scrutinized highly, especially with publicly traded companies. Instead, AOBC “…completed the purchase of substantially all of the assets…” I assume this means some technologies and IP will remain the property of the former owner or other members of the staff. Or, it is common for specific technologies to be bought out privately during the sale by various staff members, etc.

Additionally, there will be “earn-out payments” which are commonly used to keep owners and/or key staff with the company with an incentive for the company to continue performing. Details of these private agreements are not usually public, but can be very lucrative – sometimes more than the initial cash transaction.

The full press release can be found here. 

Hunting

via The Firearm Blog http://ift.tt/ywCWoj

August 11, 2017 at 02:00PM

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