Agreement to acquire Alliance Systems
MDSI Mobile Data Solutions Inc MMD
Shares issued 3,990,793 Apr 9 close $26.00 Wed 9 Apr 97
News Release
Ms Nancy McLeod reports
MDSI and Alliance Systems have entered into an agreement in principle under which MDSI will acquire Alliance Systems of Chicago, Illinois, a supplier of mobile workforce management solutions to the utility, public safety, and cable market sectors.
In exchange for 100% of the shares of Alliance, MDSI will provide Alliance shareholders approximately US$1,432,901 in cash and notes and 339,371 shares of MDSI. The acquisition is subject to the negotiation and execution of a definitive agreement and regulatory and other customary approvals and requirements. The transaction will be accounted for using the purchase accounting method and the company expects to incur a US$6 million charge for acquired in-process research and development during the second quarter.
Alliance has developed a strong position supplying workforce management solutions to the utility, cable, and public safety markets in North America. Alliance achieved revenues during 1996 of approximately US$7.9 million and currently employs 80 professionals at its headquarters in Chicago, and regional offices in Tampa and San Francisco. The company relies on litigation protection for "forward-looking"statements.
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