# Virtuix Moves to Acquire Arlington STS

Virtuix signed a non-binding letter of intent on November 12, 2026, to acquire Arlington, Virginia-based defense contractor STS International for $12 million in base consideration, with potential earnouts and additional equity. The companies are targeting completion by March 31, 2027, but the deal remains subject to due diligence, an audit, financing for the cash portion, approvals, definitive agreements, and other closing conditions. If completed, it could give Virtuix access to STS’s federal contract vehicles, CMMC Level 2 compliance, facility-clearance capabilities, and defense customer relationships to pursue training, simulation, C5ISR, and sustainment work.

- **Why this matters:** The proposed combination could create additional routes for immersive training and simulation offerings into defense markets through STS’s GSA, SeaPort-NxG, and DoD contract channels. Access and future work are contingent on the acquisition closing and applicable contract terms.
- Virtuix and STS cite existing Army and Marine Corps work, including the Omni One system sale and the Marine Corps Infantry Fireteam Trainer, as relevant defense-market experience.
- Contractors may wish to assess potential teaming or subcontracting opportunities in training, simulation, C5ISR, and sustainment if the transaction closes; the proposed Virtuix Defense business is not yet an established outcome of the deal.
- Procurement and business teams evaluating STS’s position should account for the transaction’s open conditions, including uncommitted financing for the cash portion and the reported financial results’ unaudited status.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Contracting Vehicles, Cybersecurity
**Published:** November 12, 2026

### Government Entities
- Department of Defense (DoD)
- General Services Administration (GSA)
- U.S. Army (Army)
- U.S. Marine Corps (USMC)

### Vendors
- Virtuix Holdings Inc. (Acquirer under non-binding letter of intent)
- STS International (Acquisition target and defense contractor)

### Key Quotes
> By combining our established C5ISR capabilities and customer relationships with Virtuix’s product development and capital markets expertise, we see significant potential to continue to expand our defense business in the years ahead.
> — David Morgan, President of STS International

### Sources
- [Virtuix to acquire defense contractor STS International in $12M deal  | NASDAQ:VTIX](https://www.proactiveinvestors.com/companies/news/1101683/virtuix-to-acquire-defense-contractor-sts-international-in-12m-deal-1101683.html) - Proactive financial news
- [Virtuix to acquire defense contractor STS International in $12M deal](https://finance.yahoo.com/technology/articles/virtuix-acquire-defense-contractor-sts-142100520.html) - Yahoo Finance
- [ Virtuix Signs LOI to Acquire Defense Contractor STS International, Reporting $40 Million in Unaudited Cash-Basis Revenue Through October 2026

 | The Manila Times ](https://www.manilatimes.net/2026/11/12/tmt-newswire/globenewswire/virtuix-signs-loi-to-acquire-defense-contractor-sts-international-reporting-40-million-in-unaudited-cash-basis-revenue-through-october-2026/2468743) - The Manila Times