Cemtrex Completes Acquisition of Training Simulation Technology Company, Virtual Driver Interactive
October 26 2020 - 8:10AM
Cemtrex Inc. (NASDAQ: CETX, CETXP, CETXW), a technology company
driving innovation in Internet of Things (IoT), security, machine
vision & artificial intelligence, and augmented & virtual
reality, has signed a definitive agreement to acquire Virtual
Driver Interactive (“VDI”), a California based provider of
innovative driver training simulation solutions.
For over 10 years, VDI has been known for its
effective and engaging driver training systems, designed for users
of all ages and skill levels. The Company offers comprehensive
training for new teen and novice drivers, along with advanced
training for corporate fleets and truck drivers. VDI’s wide range
of training courses and system options provide customers with
highly portable, affordable and effective solutions, all while
focusing on the dangers of distracted driving.
VDI has over 2,000 installations across all 50
states. Their core market includes school districts, large fleets,
organizations in state public safety, non-profits and insurance
companies across the US. Current customers include the U.S. Postal
Service, ConEd, Minnesota Dept. of Transportation, AAA, Mayo
Clinic, Kaiser Permanente, Nationwide and Allstate.
VDI's product portfolio also includes Driving
Essentials XE, an at home teen driver program using the Xbox and
Playstation platforms that provides teens with a tool to gain
real-world experience in the safety of their own home.
“VDI is a market leader with best-in-class
driver training products, with over $2 million in annual revenue,”
said Saagar Govil, Chairman and CEO of Cemtrex. “VDI has built a
successful business with innovative technologies, an effective
product portfolio and extensive customer base. Those customers
include the U.S. Postal Service, numerous universities and school
districts along with some of the nation’s largest fleets in
transportation, utilities, networking, insurance and public safety
sector.
“We will expand and accelerate those
achievements by transitioning their technology to next generation
solutions including VR, enhancing the training solutions and
broadening the product portfolio into other simulation and
recreational areas. By integrating our technology and resources,
and building on the momentum VDI has established, we can reach our
long-term goal of creating immersive training solutions in multiple
vertical markets. We are looking forward to working with
VDI’s highly skilled team to add to our dynamic AR/VR division,”
concluded Govil.
Cemtrex completed the acquisition on October
23rd, 2020 using existing cash on hand. The transaction is expected
to be accretive beginning in Q1 FY2021 to both non-GAAP earnings
per share and cash flow.
About Virtual Driver
Interactive
Virtual Driver Interactive (VDI) is well known in the simulation
industry for its vision of innovative simulation-based
training. Training programs include Driving EssentialsXE,
console-based teen driver training program using Xbox & PS4;
One Simple Decision®, a deterrent to distracted or impaired
driving; Virtual DE™ (VirtualDriving Essentials), a driver
training and assessment program teaching critical skills and
Virtual HD™(Virtual Hazard Detection), for corporate fleet safety
programs. For more information about VDI’s innovative
interactive simulation driver training solutions, please
visit www.driverinteractive.com.
About Cemtrex
Cemtrex, Inc. (CETX) is a leading multi-industry
technology company that is driving innovation in markets such as
Internet of Things (IoT), Augmented and Virtual Reality (AR &
VR), and Artificial Intelligence and Computer Vision (AI & CV)
in a wide range of sectors, including consumer products, industrial
manufacturing, digital applications, and intelligent security &
surveillance systems.www.cemtrex.com.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements relating to the closing of
the offering, gross proceeds from the offering, our new product
offerings, expected use of proceeds, or any proposed fundraising
activities. These forward-looking statements are based on
management’s current expectations and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward
looking statements. Statements made herein are as of the date
of this press release and should not be relied upon as of any
subsequent date. These risks and uncertainties are discussed under
the heading “Risk Factors” contained in our Form 10-K filed with
the Securities and Exchange Commission. All information in
this press release is as of the date of the release and we
undertake no duty to update this information unless required by
law.
Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us
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