Cemtrex Inc. (CETX) fell 13.22% in after-hours trading following the announcement of its $7.06 million agreement to acquire Invocon, a Texas-based aerospace engineering firm. The deal, expected to close in early 2026, is intended to establish a new Aerospace & Defense segment for Cemtrex, leveraging Invocon’s 40-year expertise in mission-critical systems for space and defense applications. However, the acquisition price exceeds Cemtrex’s current market capitalization of $2.68 million, raising concerns among investors about valuation risks, integration challenges, and the company’s ability to scale the new segment profitably. While the transaction aligns with Cemtrex’s long-term strategic goals, the significant premium and uncertainty around execution likely triggered the sharp after-hours decline.
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