LightPath Technologies' BlackDiamond glass. [Image: LightPath Technologies]
The US-based optical and infrared components and systems firm LightPath Technologies announced on 13 February that it had acquired G5 Infrared, LLC, USA, a high-end infrared camera systems manufacturer. Expected to close later this month, the US$27 million cash-and-stock deal will expand LightPath’s offerings to include cooled infrared cameras and create a “more robust, vertically integrated solutions provider,” according to the company.
Toward vertical integration
LightPath, headquartered in Florida and with manufacturing facilities in Riga, Latvia; Zhenjiang, China; and Texas, USA, designs and manufactures a variety of optical and IR components for industry, defense, telecom, medicine and other areas. Since the arrival of current CEO Sam Rubin in 2020, the company has pursued a strategic realignment to transform from a pure component provider to a developer of customized, value-added subsystems and solutions for infrared imaging.
To that end, the company acquired Visimid technologies in 2023. This deal added to its portfolio thermal imaging and night vision technologies that have since been adopted by Lockheed Martin’s Missiles and Fire Control arm to “develop a key imaging technology” as part of a large US Army defense program.
Rubin said in a statement that the G5 acquisition is the next stage in this transition: “The addition of G5 Infrared fits naturally into what we have been building, and is a logical next step in our journey,” he told investors. “Not only do G5’s products complement LightPath’s products perfectly; G5 is also at a pivoting point, about to be awarded some large, lucrative defense programs.”
Expanding the spectrum
G5, founded in 2011, specializes in long-range detection solutions for the defense, border security and counter-drone markets. The acquisition will expand not only LightPath’s vertical integration but also its spectral coverage, with G5’s expertise ranging from mid-wave infrared imaging systems to thin-film optical coating deposition—including for LightPath’s own BlackDiamond glass.
The acquisition will expand not only LightPath’s vertical integration but also its spectral coverage, with G5’s expertise ranging from mid-wave infrared imaging systems to thin-film optical coating deposition.
The chalcogenide infrared glass, which LightPath offers as an alternative to germanium and other traditional crystalline IR materials for thermal imaging applications, has high transmission in short-wave, mid-wave and long-wave IR wavebands, from about 1 to 14 µm. According to a press release, LightPath believes the combined company is well-positioned to develop advanced multispectral imaging systems that combine the advantages of the BlackDiamond glass with the cooled imaging technology of G5.
“By integrating G5's capabilities with our proprietary BlackDiamond glass and in-house optics manufacturing, we are enhancing our ability to deliver high-performance imaging solutions for defense, government and commercial applications, and positioning the combined company to take a leading position in next-generation imaging systems whether those be uncooled, cooled or a combination of both,” said Rubin.
A look at the numbers
LightPath announced the G5 acquisition alongside the release of its FY 2025 second quarter earnings, for the period ending 31 December 2024. The company posted revenue of US$7.4 million for the quarter, a little below expectations and up just 1.5% year-over year. The company's gross profit decreased 11% to US$1.9 million, compared with US$2.2 million in the same quarter of the prior fiscal year. The company said in a press release that this loss was “primarily due to differences in the product mix, coupled with some manufacturing yield issues in infrared components.”
G5 is reported to have generated at least US$15 million in preliminary, unaudited revenue during calendar year 2024, according to the press release, which also noted that multiple new programs of record awarded to the company will “substantially increase the already strong trajectory of its revenue.” Rubin said the combined company would likely achieve annual revenues of “at least” US$55 million over the coming 12 months.
