Business
Orbit International Acquires Assets of Q-Vio, LLC
Orbit International Acquires Assets of Q-Vio, LLC.
About this update from Orbit International Corp.
[{"type":"text","content":"\n Acquisition is Expected to be Accretive Q-Vio’s Sales Approximately $2,000,000-$2,500,000 Annually Since 2016 with Gross Margins in Excess of 40% Q-Vio Specializes in the Design and Enhancement of LCD Display Modules Q-Vio to Close its Operations in San Diego, CA All Manufacturing to be Moved to Orbit’s Hauppauge, NY Facility HAUPPAUGE, N.Y., Aug. 23, 2019 (GLOBE NEWSWIRE) -- Orbit International Corp. (“Orbit”) (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that it has purchased the assets of Q-Vio, LLC, a leader in the enhancement of LCD display modules. The transaction has been structured as an asset sale in which Orbit, through a newly formed subsidiary that will operate under the name Q-Vio Corp., will purchase substantially all of Q-Vio LLC’s assets and assume certain of its liabilities.  The  purchase price will consist almost entirely of an earn-out to Q-Vio LLC based on the attainment of certain revenue and gross profit benchmarks through December 31, 2022. Q-Vio Corp. will operate as a wholly owned subsidiary of Orbit and become part of the Orbit Electronics Group (“OEG”).  Q-Vio LLC’s annual sales have been approximately $2,000,000-$2,500,000 since 2016 with gross margins in excess of 40%.  Q-Vio LLC’s current backlog is in excess of $900,000 and sells its products in the military, industrial, marine and broadcast marketplaces.  In addition, Q-Vio LLC, which is located in San Diego, California, has an expiring lease as of August 31, 2019.  Consequently, its operations in San Diego will be closed and all manufacturing and administrative functions will be moved to Orbit’s facility in Hauppauge, NY.  Ray Pronko, Q-Vio LLC’s President, will become Vice President of Marketing and Sales of Q-Vio Corp. and will operate out of Orbit’s sales office in Bradenton, Florida. In addition, two Q-Vio LLC employees in mechanical engineering and sales application engineering will be retained by Orbit.  Additionally, Q-Vio Corp. will continue Q-Vio LLC’s practice of utilizing several manufacturing contractors in China for certain high-volume sales opportunities in order to preserve its 40% gross margin objectives. Mitchell Binder, President and CEO of Orbit International co...