Defence and homeland security equipment provider XTEK (ASX:XTE) enters 2016 on the heels of a bomb disposal robot sale that represents a first-of-its-kind transaction in the Australian market for a piece of equipment that is a leader in its class.
The sale of ICOR Technology's Caliber Mk 4 EOD robot in Australia typifies the high-tech and international nature of XTEK's business model, which focuses on importing high-quality security, military, search, chemical, biological, radiological and nuclear detection, decontamination, forensic, diagnostic and screening equipment for sale to governments and law enforcement agencies.
The company has recently diversified even further with a deal to acquire Simmersion Holdings, a company specialising in 3D modelling and simulation technology for urban planning.
MEET Chairman Uwe Boettcher at Proactive's Spotlight CEO Sessions in Sydney and Melbourne in February 2016
By taking control of Simmersion, XTEK has increased shareholder value through greater exposure to a 3D imaging market expected to be worth US$16.6 billion by 2020.
This effort will coincide with a broader market momentum that appears set to further fuel the company's growth in the foreseeable future.
With the global market for body armour and personal protection estimated to grow from US$1.5 billion in 2012 to $2.4 billion by 2022, the sector's global cumulative spend between 2017 and 2022 is estimated to total $12.9 billion.
U.S. armour demand accounts for approximately 50% of this market, making it the largest market in the world for high-quality body armour plates and other armour requirements.
Commercialisation of the company's proprietary XTclave lightweight armour technology in the U.S. is expected to develop through a joint venture, royalty-based licensing or one-off application based licensing.
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