Well the market definitely likes both the acquistions and proposed sale of the microwave division. That's just fine by me. I was also happy to see that MOT was mentioned so often in the press releases as that means GEMS has made sure they are playing with or along with the real big boy in the industry. Good timing on your buyback skeeter! I wonder if there will be any decent size contracts announced soon to alleviate any remaining fear that GEMS will not be able to maintain expected earnings before the new acquistions actually begin to pay off. Regards, Jeff
Wednesday September 10 9:46 AM EDT
Glenayre Plans Acquisitions, Sees Related 4Q '97 Charge
GLENAYRE TECHNOLOGIES INC. Plans Acquisitions, Sees Related 1997 Fourth Quarter
Charge, To Divest Mircowave Radio Unit--
Ticker: GEMS (news)
Highlight: M&A
Date: 970910
Sept. 9, 1997, Glenayre Technologies Inc. (GEMS) said it plans to acquire Wireless Access Inc., a private developer and
marketer of innovative two-way paging devices, and Open Development Corp., a private developer of enhanced service
software and products for telecommunications providers. The transactions are valued at about $148,000,000.
GEMS said it signed a letter of intent to acquire Wireless Access, a privately held Santa Clara, Calif.-based company, for
about $100,000,000 in cash and options and Open Development, which is based in the Boston area, for about $48,000,000
in cash and options.
GEMS said the transactions are expected to close in the fourth quarter of 1997. As a result of the acquisitions, the company
stated that for the fourth quarter it will report a pre-tax charge related to the write-off of purchased in-process research and
development.
GEMS said it anticipates Wireless Access sales to total about $18,000,000 for 1997, with continued growth in 1998. GEM
said Open Development's sales are anticipated to be in the $15,000,000 to $18,000,000 range for 1997.
Following the transactions, the company said Wireless Access and Open Development optionholders will have the right to
purchase shares equivalent to less than 3% of GEM's common on a fully diluted basis.
Separately, GEMS reported that it plans to divest its microwave radio unit, Wireless Interconnect Group.
More news for referenced ticker symbols: GEMS. |
