Vuzix has announced that the company has amended the 10-year-non-compete restrictions it entered into with the buyer of its defense division in June 2012. This agreement meant that for a ten-year period the leading supplier of smart glasses and augmented reality (AR) products was not allowed to sell products or solutions directly or indirectly into the global Military, US Department of Defense, Security Organizations and First Responder markets. The agreement was held with TDG Acquisition LLC and had four years remaining on it but now, following an amendment to the agreed Vuzix can immediately pursue opportunities for their products and solutions in the above markers.
“Vuzix has always seen great opportunity in the first responder, defense and homeland security markets but saw better near-term opportunities in enterprise and consumer when making earlier resource allocation determinations,” commented Paul Travers, President and CEO. “Today, we have seen military, security and first responder opportunities come to the forefront as well. In assessing these developing opportunities, Vuzix and Six15 felt that collaboration rather than competition is the right mix to pursue and potentially win these significant opportunities. As such, we worked with Six15 to find ways where we might best pursue these opportunities and are quite pleased to reach this resolution afforded by the amendments to the earlier transaction documents. Together, we see many great opportunities and look forward to bringing Vuzix back to its roots and once again becoming a key player in the defense and military markets.”
These new markers are significant in both the United States and globally and exceed millions of equivalent personnel that could leverage and benefit from the products and solutions Vuzix has to offer. The defense and secuity organizations include business customers and Governmental Entity customers that mainly offer security and defense services, including police, fire fighters, EMTs, other first responders, homeland and border security.
“Six15 is excited to expand the relationship with Vuzix and create opportunities to best support First Responder and Defense communities. Through a cooperative agreement, we believe that both companies can deliver superior solutions to these markets and focus on the strengths each organization brings to the relationship,” commented Rich Ryan, CEO of Six15 Technologies.
Further to the amendment, Vuzix and Six15 have agreed to work together on incorporating Vuzix’ industry leading waveguide optics and display engine technologies into Six15 products. As part of all this, Vuzix will pay a total of $1.5 million (USD) to Six15 in three installments over the next six months and will pay commissions at various rates for any sales into these newly opened markets.
As Vuzix continues to expand into new markets and bring their smart glasses and AR solution to more customers, VRFocus will be sure to bring you all the latest so stay tuned for more.