Alanco sells StarTrak subsidiary
Alanco Technologies has entered into a definitive purchase agreement to sell its subsidiary StarTrak Systems to ORBCOMM for approximately $19.7 million.
StarTrak provides of tracking, monitoring and control services for the refrigerated transport market. The transaction is expected to close in early Q2, subject to customary closing conditions, including Alanco shareholder approval. The transaction price comprises cash, ORBCOMM stock and assumed debt, including a potential earn out of up to $1.2 million. Alanco chairman & CEO Robert Kauffman commented that the deal provides shareholders with a favourable, risk-adjusted valuation for the StarTrak business, and also means that Alanco will receive a significant shareholding in the global satellite data communications company (ORBCOMM), which Alanco believes will be an excellent long-term investment. The deal will also facilitate a capital restructuring of Alanco. resulting in elimination of all interest-bearing debt, retirement of both Series D and E Preferred Stock, and retirement of approximately 1.2 million common shares, reducing the total outstanding common stock to about 4.4 million shares. The resulting post-transaction Alanco will feature a relatively ‚clean‘ balance sheet with $7-8 million of current assets consisting of cash and ORBCOMM stock. Quelle: eyefortransport Portal: www.logistik-express.com |
