Ammunition technology provider True Velocity has agreed to acquire LoneStar Future Weapons for approximately $84 million as both companies are pursuing the U.S. Army’s Next Generation Squad Weapons contract.
True Velocity said Wednesday the deal would add LoneStar’s portfolio of weapons and projectile technology products to the acquirer’s suite of lightweight ammunition offerings with more than 340 existing or pending patents.
The companies’ existing partnership was one of the two downselected teams for the NGSW development competition slated to conclude in January.
LoneStar will become a wholly-owned subsidiary of True Velocity’s parent company, TV Ammo, upon the completion of the transaction.
Both parties also plan to offer a lightweight machine gun and other commercially-available firearms.
Kevin Boscamp, chairman and CEO of True Velocity, said he expects the transaction to help position the company to provide advanced weapons and munitions to domestic and international defense clients.