Arsenal to Acquire Cyalume for $45 Million Cash

Arsenal Capital Partners (Arsenal) has agreed to acquire Cyalume Technologies Holdings Inc (CYLU), for a total cash consideration of $45 million. The deal is expected to close in September 2017.

Cyalume currently estimates that, if the closing of the transaction were to occur on August 31, 2017, the total amount to be paid to holders of Cyalume’s common stock would be approximately $5.8 million, or approximately $0.2081 per share of common stock.

“We are very pleased to announce this transaction with Arsenal, as we believe it affords us the opportunity to both deliver a return to many of our various stake holders that have supported Cyalume over the past several years and positions the Company for continued growth and future success,” said Zivi Nedivi, Cyalume President and CEO.

“We are very excited to have Arsenal as our partner and we are confident that with their strategic and financial support we will be able to significantly accelerate our growth in the speciality chemical, pharmaceutical and medical product markets,” added Dale Baker, chief operating officer, Cyalume.

“Cyalume has a strong brand and long-term relationships with blue chip customers. Given its robust portfolio of technologies, we expect that Cyalume will serve as a platform for further acquisitions in the speciality chemicals and performance polymers sector. We look forward to partnering with the Cyalume team to expand the Company’s capabilities,” said Sal Gagliardo, industry and operations partner, Arsenal.

“The investment in Cyalume represents an opportunity for Arsenal to leverage its industry knowledge and operating expertise in the formulated materials sector to support the company’s strategy,” added Roy Seroussi, principal at Arsenal.

Greenberg Traurig serves as legal counsel to Cyalume, and Cassel Salpeter & Co LLC acts as financial advisor to the special committee of the board of directors of Cyalume. 

DLA Piper LLP (US) serves as legal counsel to Arsenal Capital Partners in connection with the transaction.