(SUL)Sulcus to be acquired by Eltrax for stock
GREENSBURG, Pa., Nov 12 (Reuters) - Sulcus Hospitality Technologies Corp said Thursday it has agreed to be acquired by Eltrax Systems Inc (Nasdaq:ELTX - news), a provider of software and network services to the hospitality industry, in a transaction valued at $66 million.
Under the terms of the agreement, Eltrax will exchange 0.55 shares of Eltrax common stock for each share of Sulcus stock.
There are about 18,475,000 shares of Sulcus stock outstanding on a fully diluted basis, so about 10,156,000 shares of Eltrax stock will be issued in this transaction.
The combined companies will produce over $100 million in revenue in 1998, the statement said.
The Eltrax acquisition of Sulcus has been approved by the boards of directors of both companies, and the closing is contingent upon approval by the shareholders of both companies.
Both companies expect to schedule shareholders' meetings in early 1999, and to complete this transaction in the first quarter.
Leon Harris, the chief executive of Sulcus, will become the president and chief operating officer of Eltrax.
Eltrax expects to account for this transaction using the pooling-of-interests method.
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