Virtuix signs letter of intent to acquire STS International
VTIX•Virtuix signed a nonbinding letter of intent to acquire STS International for $12 million in cash and equity. Closing is targeted by March 31, 2027, subject to financing, audited financial statements, definitive agreements and other conditions.
1. Proposed acquisition
The debt-free, cash-free deal could include earnouts tied to pending contract awards and post-closing revenue targets, alongside additional shares. STS reported approximately $40 million in unaudited cash-basis revenue through October 31, 2026, with positive EBITDA and approximately $600,000 in net income.
2. Defense expansion
The acquisition would establish Virtuix Defense, expanding military contracting capabilities through STS's government contracts, security infrastructure and customer relationships.
