FirLan acquisition
PLAINTREE SYSTEMS INC ("LAN-T;LANPF-L") - Enters Wireless Networking Space
Plaintree Systems Inc. announced that it has acquired all the assets of Ottawa-based A. T. Schindler Communications Inc. (ATS), designer and manufacturer of the FirLAN wireless networking products.
The terms of the agreement provide for an all-stock transaction, except for a payment by Plaintree of certain liabilities of ATS. The purchase price is the aggregate of 2,500,000 common shares of Plaintree plus the payment by Plaintree for the assumed liabilities, subject to adjustments.
"This was a strategic business decision for us, and a great deal for both companies," said Plaintree president and CEO Dave Watson. "The wireless market is booming and we intend to leverage this momentum with the FirLAN technology. The FirLAN products meet Plaintree's high standards of performance and reliability and are the ideal complement to our existing product line as we move forward with renewed energy and purpose."
All employees of ATS will be moving into Plaintree's offices within weeks, a move that will consolidate R & D and marketing for the two product divisions.
ATS has a reputation for high quality, safe, environmentally friendly, and cost-effective products. The FirLAN product line of wireless Ethernet and Token Ring Local Area Networking hardware allows for up to 25 Mbps transmission of data via LED infrared signal and is used worldwide in a variety of business, military, medical and industrial applications. Customers include Children's Hospital of Eastern Ontario, Johns Hopkins Medical Center, New Brunswick.Telephone, Hollywood's Centre Theatre Group and the Canadian Senate.
The conclusion of the transaction is subject to receipt of all necessary regulatory and court approvals and the execution of the closing documentation, and is anticipated to occur no later than March 24, 2000.
About Plaintree Systems
A publicly held company, founded in 1988, Plaintree Systems develops and sells local area network switches, maintaining a reputation for high quality products and technical support. Headquartered in the Ottawa region, Plaintree also maintains operations in the US. Plaintree is publicly traded in Canada on the TSE and in the US on the NASD OTC Bulletin Board. Plaintree maintains a World Wide Web site on the Internet at plaintree.com. TEL: (613) 274-7979 ext. 227 Kira Pejemsky, Plaintree Systems Inc. E-mail: kpejemsky@plaintree.com TEL: (613) 236-0909 ext. 302 Cathy Browne, High Road Communications E-mail: cbrowne@highrd.com |
