Digi International agrees to buy NetSilicon for $50 million
Published Oct 31 2001
Digi International Inc., a networking-equipment maker, said it
agreed to pay $50 million in cash and stock for NetSilicon Inc.,
which makes chips and software for copiers, fax machines and
printers.
Digi International will exchange 0.65 share for each share of
NetSilicon, or an equivalent amount in cash, it said in a
prepared statement. That values NetSilicon at about $3.53 a
share, 36 percent more than Tuesday's closing price.
Digi International said it expects the purchase to begin adding
to its earnings in 2003. The Minnetonka-based company
anticipates completing the purchase in the first quarter of next
year.
Digi International shares, which have dropped 15 percent in
the past year, fell 7 cents to $5.43. Shares of NetSilicon, based
in Waltham, Massachusetts, rose 20 cents to $2.60. The
acquisition was announced after the close of regular trading.
Digi International said the amount of cash it will spend to
acquire NetSilicon shares is capped at $15 million. Digi
International representatives couldn't immediately be reached
to comment.
-- Bloomberg News
© Copyright 2001 Star Tribune. All rights reserved. |
