Alanco completes its sale
of StarTrak to ORBCOMM
May 18, 2011 10:22 AM
Alanco Technologies Inc (NASDAQ: ALAN) has completed the sale of its subsidiary StarTrak Systems LLC to ORBCOMM Inc (NASDAQ: ORBC).
The transaction close was conditioned upon Alanco shareholder approval, which was obtained May 10, 2011, at the company’s annual shareholder’s meeting in Scottsdale AZ. Total selling price is valued at approximately $18.3 million, comprised of cash, ORBCOMM securities, and assumed debt, with a potential additional earn-out of $1.2 million.
Robert R Kauffman, Alanco chairman and chief executive officer, said, “This transaction completes our capital restructuring program, retiring all interest-bearing debt, our dividend-bearing Series D and E preferred stock, and approximately 1.2 million shares of common stock.
“Alanco’s new capital structure, with common shares outstanding reduced to approximately 4.4 million, features a relatively ‘clean’ balance sheet with virtually no debt, and current assets comprised of cash and ORBCOMM common stock totaling $7-8 million,” he said. “We are actively pursuing new opportunities to enhance shareholder value by leveraging our assets and public listing through strategic merger or acquisition with an appropriate, privately owned company.”
StarTrak Systems provides tracking, monitoring, and control services to the refrigerated (reefer) segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs in the refrigerated supply chain. For more information, visit www.alanco.com or www.startrak.com.
ORBCOMM is a global satellite data communications company focused on Machine-to-Machine (M2M) communications. Its products are installed on trucks, containers, marine vessels, locomotives, backhoes, pipelines, oil wells, utility meters, and storage tanks. Fort Lee NJ-based ORBCOMM has its network control center in Dulles VA. For more information, visit www.orbcomm.com.
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