News: Optoelectronics
24 February 2025
NUBURU agrees strategic transaction with private equity investment group
NUBURU Inc of Centennial, CO, USA — which was founded in 2015 and develops and manufactures high-power industrial blue lasers — has announced its entry into a commitment letter aimed at expanding its existing defense business and establishing a new presence in the security sector.
The strategic transaction with a private equity investment group signifies a transformation that is expected 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 should enable NUBURU to expand its current expertise to generate potential synergies with the new ventures. 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 Service (SaaS) startup focused on operational resilience (which includes business continuity, ICT risk management and cybersecurity), offering significant potential synergies within the new hub.
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 $1.5m in cash alongside $23.5m 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 more than 20% of the company’s outstanding common stock as part of the purchase price.
The defense market is projected to expand at a compound annual growth rate (CAGR) of 7.3% from $491.06bn in 2024 to $527.06bn in 2025. Similarly, the cybersecurity market is set to grow at a CAGR of 10% from $243.15bn in 2024 to $267.51bn in 2025. According to The Business Research Company, these trends are driven by an increase in cyber threats, military modernization efforts, and growing demand for advanced military technologies.
“This transformative acquisition not only amplifies our technological capabilities but also positions NUBURU in the defense sector and the operational resilience emerging market needs,” says Zamboni. “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.”
NUBURU regains compliance with NYSE American Market
