Business
Lantronix Announces Definitive Agreement to Acquire Intrinsyc Technologies Corporation
Transaction brings immediate scale and operating efficiencies to LantronixAdds complementary IoT computing and embedded product design capabilitiesLantronix
About this update from Lantronix, Inc.
[{"type":"text","content":"Transaction brings immediate scale and operating efficiencies to LantronixAdds complementary IoT computing and embedded product design capabilitiesLantronix anticipates significant operating and product development synergiesExpects the acquisition to be accretive to non-GAAP EPS in first full quarterAnnounces conference call to discuss the acquisitionAffirms guidance for first quarter of fiscal 2020 IRVINE, Calif., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Lantronix, Inc. (“Lantronix”) (NASDAQ: LTRX), a global provider of secure data access and management solutions for the industrial Internet of Things (IoT), today announced that it has entered into a definitive arrangement agreement to acquire all of the outstanding shares of Intrinsyc Technologies Corporation (“Intrinsyc”) (TSX: ITC and OTCQX: ISYRF), a leading provider of solutions for the development of embedded and IoT products. The transaction, which is subject to approval by the shareholders of Intrinsyc along with other specified closing conditions, has been unanimously approved by the board of directors of both companies and is expected to be completed by the end of this calendar year or shortly thereafter.\n Under the terms of the arrangement agreement, Lantronix will pay $0.55 and issue 0.2135 of a share of the common stock of Lantronix for each issued and outstanding share of Intrinsyc. Lantronix will, in the aggregate, pay approximately $11.5 million in cash and issue approximately 4.3 million shares of its common stock to Intrinsyc shareholders. Following the transaction, Intrinsyc shareholders are expected to own approximately 16% of the outstanding shares of the common stock of Lantronix. Certain shareholders of Intrinsyc that collectively own approximately 14.5% of the outstanding shares of Intrinsyc have already entered into voting agreements to vote in favor of the transaction. The transaction will bring immediate scale to Lantronix, adding complementary IoT computing and embedded product development capabilities and expanding the company’s IoT market opportunity. Lantronix sees significant operating and product development synergies in the combined company and expects the acquisition will be accretive in the first full quarter of operations. “The acquisition of Intrinsyc demonstrates our continuing commitment to deliver incremental growth and shareholder value throug...