ATEC buyout @$10...should gap in the morning
Monday August 3, 3:17 pm Eastern Time
IAT Multimedia to buy ATEC Group
NEW YORK, Aug 3 (Reuters) - IAT Multimedia Inc. (IATA - news) said Monday that it signed a letter of
intent to buy ATEC Group Inc. (ATEC - news) in a stock swap valued at about $77 million, based on an
assumed $10 per share price of IAT common stock.
Under the terms of the agreement, each share of ATEC common stock would be exchanged for one share
of IAT common stock, subject to adjustment if the market price of IAT stock fell below certain levels prior
to the closing of the transaction.
ATEC Group, which makes computer hardware, software including Year 2000 complicance solutions,
connectivity devices and data communications via satellite, would have the right to choose two board
members for IAT's board.
Consummation of the transaction is subject to closing conditions, including shareholder approval of both
companies.
IAT, which markets high-performance PCs and peripherals in Germany and licenses proprietary visual
communications technology, said the transaction will help it cut costs and allow it to distribute its PCs to the
U.S. market.
''We are approaching the critical mass called for in our business plan, which will allow us to drive down
costs and concentrate on the higher margin businesses of providing services and solutions,'' Jacob Agam,
IAT's chairman, said in a statement.
''This transaction will allow ATEC to expand its markets both domestically and abroad,'' Surinder Rametra,
ATEC's chairman, stated in a press release. ''As IAT continues to participate in the ongoing consolidation of
the PC and PC networking market in Europe, ATEC will be able to provide its expertise in Year 2000
compliance as well as provide distribution for IAT's lines of high quality PC's and multimedia products.''
As part of the agreement, Rametra will stay on as a consultant to IAT for a period of three years from the
closing of the transaction.
ATEC had said in March that is was seeking a partner and it hired First Colonial to advise the company on
potential mergers.
IAT also announced it intends to apply for the listing of its common stock on the German Neuer Market in
the near term.
IAT shares currently trade on NASDAQ's National Market System, as well as the Frankfurt, Berlin,
Dusseldorf, and Stuttgart Exchanges.
Shares in ATEC were trading up 1-3/4 on Nasdaq at 1500 EDT/ 1900 GMT. IAT was trading off 2 at
11-3/4.
|
