(PR NEWSWIRE) Computone and Ladia Reach Definitive Merger Accord
It looks like I answered my own question! Would anyone care to offer their opinion on what this means for the stock?
Computone and Ladia Reach Definitive Merger Accord
ALPHARETTA, Ga., Dec. 11 /PRNewswire/ -- Computone Corporation
(OTC Bulletin Board: CMPT) and Ladia LLC (Ladia) announced today that they
have completed the negotiation of their agreement to combine the two
companies. The transaction is expected to close in the next 30 to 60 days and
will be accounted for as a pooling of interests and to qualify as a tax-free
reorganization. The combined companies will be renamed Ladia Communications
Technologies, Inc. Upon closing, CMPT will issue to Ladia members'
approximately 5.0 million shares of Computone Corporation common stock upon
the closing of the transaction. Ladia, based in Boston, Massachusetts, is a
telecommunications service company managed by a highly experienced team with a
history of successfully implementing, operating and maintaining a variety of
telecom services including Internet Protocol related products and services.
Each of Ladia's top management team members has significant prior experience
in senior management and consulting positions within Fortune 500 companies.
Ladia currently operates and maintains inmate telephone systems for
correctional facilities throughout the Southwest and has recently engaged in
debit callback activities using conventional and Internet Protocol technology.
Through its dedicated facilities and network of switches, Ladia will offer a
wide variety of international and domestic long-distance telephony services.
Ladia operates with a direct sales force that concentrates on selling Ladia's
telecommunications products and services to medium and large international
organizations as well as domestic carrier customers. Ladia also enters into
joint ventures and strategic partnerships in order to more efficiently sell
its telecommunications services and products to domestic and foreign markets.
Ladia expects to produce rapidly growing revenues throughout 1999 and
beyond with operating margins consistent with industry standards. Barry
Spillberg, Chief Operating Officer of Ladia commented, "With access to the
public capital markets, we will provide a wider range of services to our
existing customers and measurably expand our marketing and sales base."
Spillberg added, "Ladia now is positioned to execute an aggressive business
plan with exceptional growth potential."
For some time, Computone has sought to acquire a dynamically growing
company that could significantly impact its revenue and earnings growth.
Ladia's business plan is inline with these requirements. In addition,
Computone hopes to gain significant additional management depth and open up
new markets for its state-of-the-art digital communications technologies and
products.
It is believed that the synergies between the two companies are very
strong and will be of benefit to the shareholders of the combined companies.
Deregulation in the telecommunications sectors worldwide will create
tremendous opportunity for growth in companies like Computone and Ladia. As
such, the combination of the two companies is an excellent compliment to the
senior management growth strategies.
Computone Corporation designs and manufactures an extensive line of
200 -- 921.6 Kbps communications servers (modular and rack mount) for Ethernet
TCP/IP LANs. Remote access, and INTERNET connectivity; 512 -- 921.6 Kbps ISDN
solutions, 200 -- 921.6 Kbps asynchronous multi-port solutions for PCI, ISA,
EISA, and Micro Channel (modular and rack mount); and synchronous
communications adapters for ISA and PS/2. Computone was awarded Arthur
Andersen's prestigious "Fast Tech 50" award for four consecutive years.
NOTE: The forward-looking statements included above are based on current
expectations that involve risks and uncertainties. Actual results including
the level of sales and earning of Computone and Ladia may differ materially
due to risks and uncertainties including, but not limited to, risks associated
with acquisitions, changes in business and economic conditions, competition,
availability for raw materials, and the risk factors listed in the reports
that Computone files with the Securities and Exchange Commission.
Computone is located at 1060 Windward Ridge Parkway, Suite 100,
Alpharetta, GA 30005. To reach Computone Sales: call 800-241-3946 or
770-625-0000; Fax 770-625-0013 E-mail: sales@computone.com or visit our web
site at: www.computone.com.
SOURCE Computone Corporation
-0- 12/11/98
/CONTACT: Dianne Will, Investor Relations, 214-954-9300, or fax,
214-954-9333, or Perry Pickerign, President, 770-625-0000 x1000, or fax,
770-625-0011, both of Computone Corporation/
/Web site: computone.com
(CMPTC)
CO: Computone Corporation; Ladia LLC; Ladia Communications Technologies, Inc.
ST: Georgia, Massachusetts
IN: TLS MLM
SU: TNM
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