News about a key new acquisition can often lead to renewed interest in a company’s stock, and it is going to be interesting to see if the Resilient Energy Inc. (OTC:RENI) stock can get any traction this week or not. On Tuesday, the company came into focus after it announced that it had been successful in completing the acquisition of Challenger Aerospace & Defense Inc. Established in 2009, Challenger Aerospace is a leading manufacturer, tester, and designer of aerial, maritime, and surface unmanned vehicles meant for private as well as commercial entities, industrial organizations, defense organizations, and government agencies.
The acquisition was a strategic one from Resilient Energy and would provide the company with the basis for strong revenue growth immediately. The revenues would be generated through current purchase orders, lucrative intellectual property, and product lines, all of which would also boost enterprise value. The size of the potential global market, as per industry experts, could be as much as $35 billion by 2025.
As per the terms of the agreement between the two parties, 100% ownership would be transferred to Resilient Energy by Challenger Aerospace, and the latter would also become a fully owned subsidiary unit of the former. The valuation of Challenger Aerospace had been determined based on the company’s strong intellectual property portfolio, strong sales pipeline, and existing orders totaling more than $3 million.
In the news release, Resilient Energy also revealed that the current management at Challenger Aerospace and its founder and Chief Executive Officer would continue to hold on to their positions following the acquisition. That would help in maintaining consistency and continuity in the organization while keeping hold of the expertise of the existing talent. The revenues and cash flow of the company would also be redirected to Resilient Energy and would be reflected in its financials with immediate effect.
