Hauppauge-based Orbit International Corp. has acquired the assets of a San Diego maker of digital displays for the military, marine and medical markets and will move its manufacturing from California to Long Island, the company announced.
In a news release Friday, Orbit, which manufactures power supply products and customized electronics for military and other government customers, said that "substantially all" the assets of Q-Vio LLC would be absorbed into its new subsidiary, Q-Vio Corp.
Terms of the deal were not disclosed, but Orbit said the purchase will be funded "almost entirely" from earn-out payments running through Dec. 31, 2022. The payments will be based on Q-Vio's reaching specified revenue and gross profit targets.
Q-Vio's annual sales have ranged from about $2 million to $2.5 million since 2016, with gross margins of more than 40 percent, according to the news release.
Calls to Orbit chief financial officer David Goldman and president and chief executive Mitchell Binder were not immediately returned.
Orbit, with sales of $24.7 million in 2018, has a 60,000-square-foot leased facility in Hauppauge that is used as its headquarters and a manufacturing site.
Ray Pronko, who was Q-Vio's president, will become vice president of marketing and sales for the newly formed subsidiary.
Two other Q-Vio employees will be retained, the company said.
“Orbit has recently utilized Q-Vio LLC’s technology to develop next-generation prototypes for certain of its military programs which are being evaluated by our customers," Binder said in a statement.
Orbit shares were unchanged at $5.90 in trading on the OTC Pink Marketplace at Friday's close.