Texas-based True Velocity is set to acquire local defence solutions manufacturing company LoneStar Future Weapons in a deal valued at around $84m.
The acquisition will add LoneStar’s next-generation weapons and projectile technology patents to True Velocity’s portfolio of more than 340 issued or pending patents in the lightweight ammunition category.
The two companies also intend to develop a lightweight medium machine gun in the future.
As agreed, LoneStar Future Weapons will operate as a wholly owned subsidiary of TV Ammo, the parent company of True Velocity.
LoneStar Future Weapons chairman Craig Etchegoyen said: “The LoneStar team is extremely excited to work more closely with True Velocity to implement our next-generation weapons, projectile technology and recoil-mitigation technology into the amazing polymer ammunition ecosystem.
“Together, our American-owned, American-based companies will provide our warfighters with the very best weapons and ammunition to protect our nation.”
In April this year, LoneStar Future Weapons and True Velocity forged a partnership to compete in the US Army’s Next Generation Squad Weapons (NGSW) programme.
LoneStar Future Weapons took over the role of the prime contractor from General Dynamics Ordnance & Tactical Systems under the arrangement while True Velocity continued as a subcontractor.
Currently, it is one of the two teams that remain under consideration for the NGSW programme. A decision is expected in January next year.
According to True Velocity, the deal will bring significant synergies in developing weapons and ammunition for the NGSW programme, as well as strengthen the company’s position for future military contracts.
True Velocity Chairman and CEO Kevin Boscamp said: “Incorporating LoneStar Future Weapons’ innovative approach to weapon design and manufacture, along with their significant intellectual property portfolio and licensing expertise, into TV Ammo’s holdings strategically positions our business to have a lasting and meaningful impact on the lethality of US fighting forces.
“It provides a path forward for the development and co-optimisation of advanced weapons and munitions for the US Department of Defense, our international allies, and the domestic commercial market.”