LightPath Technologies Stock Rises After Hours – What’s Behind The Move?

LightPath said it has acquired the assets of Amorphous Materials for an aggregate consideration of $7.0 million in cash with potential additional milestone-based equity consideration of up to $3 million.

• The deal is expected to add approximately $3.0 million in annual revenue following completion of the acquisition.
• The company said that acquisition accelerates execution of strategic vision to become a leading vertically integrated infrared imaging (IR) solutions provider.
• AMI manufactures glass for defense programs including the Joint Strike Fighter Electro-Optical Targeting System and the Arrowhead sensor suite for Apache helicopters.

Shares of LightPath Technologies (LPTH) rose in extended hours of trading on Tuesday after it announced it has acquired the assets of Amorphous Materials (AMI), an industrial manufacturer for aggregate consideration of $7.0 million in cash with potential additional milestone-based equity consideration of up to $3 million. 

The company said that the acquisition accelerates execution of strategic vision to become a leading vertically integrated infrared imaging (IR) solutions provider in the $9 billion infrared imaging market.

"This accretive acquisition strengthens our industry position, glass supply chain – and with the addition of large diameter glass plate capabilities – further solidifies our transition from a pure component provider to a truly vertically integrated provider of subsystems and solutions for IR imaging," said Sam Rubin, President and Chief Executive Officer of LightPath. 
Shares jumped more than 2% in after-market hours, at the time of writing. 

AMI Deal

LightPath, with the help of the deal, is adding incremental AMI glass melting technology in its portfolio. The technology helps melt high-grade glass as large diameter plates, which is critical for large optics, and in particular for space programs. 

The deal is expected to add approximately $3.0 million in annual revenue following the acquisition. 

This acquisition strengthens LightPath's capabilities for large diameter optics, adding not only additional glass capacity, but the capability of making BlackDiamond up to 17" diameter, compared to 5" diameter today, significantly enhancing LightPath's ability to supply large, high-value optics, the company said in a statement. 

AMI manufactures glass for defense programs including the Joint Strike Fighter Electro-Optical Targeting System and the Arrowhead sensor suite for Apache helicopters.

How Did Stocktwits Users React?

Retail sentiment around LPTH trended in territory amid message volume. 

Shares in the company have risen nearly 26% year-to-date. 

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