Comverse Tech To Buy Loronix Info Sys
Monday, March 6, 2000 05:35 AM
WOODBURY, N.Y. (Dow Jones)--Comverse Technology Inc. (CMVT, news, msgs) signed a definitive
agreement to buy Loronix Information Systems Inc. (LORX, news, msgs) for about 987,000 shares.
Comverse will exchange 0.1925 common shares for each Loronix share and assume Loronix's stock
options, the companies said in a press release Monday.
Shares of Comverse closed Friday at 227 1/2 on Nasdaq volume of 1.8 million shares, up from
Thursday's close of 208 13/16. Shares of Loronix closed at 31 3/8 on Nasdaq volume of 78,700 shares,
up from Thursday's close at 29. Loronix has about 5.9 million shares outstanding.
Comverse said it doesn't expect the transaction to be dilutive to per-share earnings, excluding
acquisition charges, which Comverse doesn't expect to exceed $15 million.
Loronix has the right to terminate the agreement if the value of the Comverse shares received falls
below $36 a Loronix share. Comverse has the right to increase the exchange ratio to adjust the
consideration to $36 a share.
Comverse, which plans to account for the tax-free transaction as a pooling of interests, said it received
an option to buy about 19.9% of Loronix's shares. Holders of about 20% of Loronix's shares agreed to
vote for the acquisition.
Loronix, which had 1999 net income of $2.9 million on sales of $37.5 million, will continue to operate
from its existing facility. Current management will continue to direct its operations.
Comverse expects to complete the acquisition by the end of July.
-Alan Paris; Dow Jones Newswires; 201-938-5400
Quote for referenced ticker symbols: CMVT, LORX
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