NUBURU partners with private equity to acquire defense-tech assets, expand into new markets, and drive innovation in defense and cybersecurity solutions.
NUBURU, Inc., a leading innovator in high-power and high-brightness industrial blue laser technology, is excited to announce its entry into a commitment letter to expand its current defense business and establish a new presence in the security sector.
This strategic transaction with a private equity investment group signifies a pivotal transformation for NUBURU, which is anticipated to include recapitalization, multiple acquisitions, licensing of advanced technologies, and the introduction of a management team with expertise relevant to these new ventures. The initiative will be led by Executive Chairman Alessandro Zamboni, who emphasizes a commitment to harnessing international investments to advance into both existing and emerging markets.
Through this first acquisition, NUBURU plans to develop a new hub focused on defense and security solutions and will embark on acquiring interests in additional technology companies that align with its strategic vision. This will enable NUBURU to expand its current expertise to generate potential synergies with the new ventures. In that regard, pursuant to the terms of the commitment letter, NUBURU would acquire (i) a license of certain technology that would allow it to expand its existing business within the defense sector, (ii) a controlling ownership interest in a defense-tech company that specializes in the design, production, and outfitting of a diverse range of vehicles, including industrial and military applications, as well as electronic devices for defense and security, advanced telecommunications, and tracking systems, and (iii) a controlling interest in a Software as a Service (SaaS) startup focused on operational resilience (which includes business continuity, ICT risk management and cybersecurity), offering significant potential synergies within the new hub.
Also Read: Microsoft Ignite 2024: Key Announcements
The anticipated acquisitions will occur in two stages, with the first stage involving the acquisition of a license and purchase of a 20% ownership interest for an aggregate price of $1.5 million in cash alongside $23.5 million in five-year notes bearing a 10% interest rate. The second stage, requiring stockholder approval, involves the acquisition of additional ownership interests, resulting in NUBURU holding a controlling interest in the target entities, which would involve issuing greater than 20% of the Company’s outstanding common stock as part of the purchase price.
The defense market is experiencing rapid growth, projected to expand from $491.06 billion in 2024 to $527.06 billion in 2025, representing a compound annual growth rate (CAGR) of 7.3%. Similarly, the cybersecurity market is set to grow from $243.15 billion in 2024 to $267.51 billion in 2025, with a CAGR of 10.0%. These trends are driven by an increase in cyber threats, military modernization efforts, and growing demand for advanced military technologies (Source: The Business Research Company).
“This transformative acquisition not only amplifies our technological capabilities but also positions NUBURU in the defense sector and the operational resilience emerging market needs,” said Alessandro Zamboni, Executive Chairman of NUBURU. “We are committed to leveraging our expertise and resources to drive innovation and provide cutting-edge solutions that meet the evolving needs of all the major critical industries.”
