Satcon Tech, Mechanical Tech In Strategic Alliance
CAMBRIDGE, Mass. (Dow Jones)--SatCon Technology Corp. (SATC) and Mechanical Technology Inc. (MKTY) formed an alliance, under which SatCon will buy Ling Electronics Inc. and Ling Electronics Ltd. from Mechanical Technology.
In turn, Mechanical Technology will invest about $7 million in SatCon.
In a press release Thursday, SatCon said Mechanical Technology will receive 1.8 million common shares of SatCon and warrants to purchase an additional 100,000 shares, as consideration for the Ling Electronics operations and the investment.
Mechanical Technology will invest $2.57 million in SatCon Friday and the rest by the end of January.
SatCon will also receive warrants to purchase 100,000 common shares of Mechanical Technology.
In addition, SatCon's President and Chief Executive will become a director of Mechanical Technology, and Alan Goldberg, a director of Mechanical Technology, will become a director of SatCon. SatCon also agreed to appoint an additional director based on Mechanical Technology's recommendations.
Ling Electronics Inc., Anaheim, Calif, makes test equipment and power products.
Mechanical Technology makes test and measurement instruments. The company's shares closed Thursday at 26, down 3/4, or 2.8% on Nasdaq trading.
SatCon makes and sells power management products. Its shares closed Thursday at 9 27/32, up 1 3/32, or 12.5%, on Nasdaq trading.
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W/o doing any looking, I'm not sure what this really brings to the table for SATC. Do they need to be in the test equip. biz? Was the Ling div. profitable? More dilution on the way.
Jim |
