JD= John Dessaurer--big money manager with a newsletter following.
Scientific-Atlanta To Sell Interdiction Business to Blonder Tongue
Scientific-Atlanta to receive $19 million and Blonder Tongue stock
Blonder-Tongue to support smooth transition for Scientific-Atlanta customers
ATLANTA, March 2 /PRNewswire/ -- Scientific-Atlanta, Inc. (NYSE: SFA), today announced that it has signed a definitive agreement to sell its interdiction business to Blonder Tongue Laboratories Inc. (Amex: BDR), based in Old Bridge, N.J.
Under terms of the agreement, Blonder Tongue will acquire all of Scientific-Atlanta's interdiction assets, including the products, inventory, manufacturing assets and intellectual property of the business. In addition to $19 million in cash, Scientific-Atlanta will receive Blonder Tongue stock valued at $1 million and an option to acquire additional shares. Scientific- Atlanta and Blonder Tongue will work closely to smoothly transition the products, manufacturing capability, and service of accounts to Blonder Tongue.
The transaction has been unanimously approved by the boards of directors of both companies. The transaction is subject to regulatory filings and the satisfaction of certain other conditions and is expected to close in the first or second quarter of this calendar year. Upon consummation of the closing, the previously announced patent litigation involving the two companies will be dismissed.
Interdiction devices are installed outside subscribers' homes and deliver uniform service to all cable-ready TV sets. Scientific-Atlanta has manufactured and sold interdiction devices since 1989. Last year the company successfully introduced a family of 750 MHz Addressable Interdiction products that are fully compatible with today's advanced network configurations. This enhanced interdiction technology has expanded capability to support a range of new services and complement future digital offerings.
"Interdiction offers a valuable combination of benefits to operators and subscribers that make it an excellent addressable solution in certain market segments. In fact, the 750 MHz products have been very well received as evidenced by record sales," said Steve Necessary, Scientific-Atlanta's vice president and general manager of analog video systems.
"While interdiction is an excellent technology, this shift will enable Scientific-Atlanta to focus more resources on other subscriber businesses - advanced analog and digital systems. Blonder Tongue has a strong commitment to the interdiction business, and we are confident that their organization and technical expertise will provide a high level of service to existing and prospective customers," Necessary added. "Blonder Tongue's ability to successfully serve our customer base was a key factor in our decision to take an equity stake in their company." |
