(Alliance News) - SimiGon Ltd on Friday said it has agreed to a merger with Power Breezer Sub Ltd and Maxify Solutions Inc, which will value the company at USD8.5 million.
Maxify is a newly formed company which will acquire all the assets and activities of Breezer, which provider intelligent atomised water-cooling systems across the US. The merger is structured as the acquisition of both Breezer and SimiGon by Maxify.
Under the deal, shareholders in the Florida-based training and simulation technologies developer are expected to receive shares in Maxify on the basis of a valuation of SimiGon at USD8.5 million, compared to Maxify's valuation of USD135 million.
Depending on certain circumstances, SimiGon's valuation could be raised to USD11 million.
Shareholders in SimiGon are expected to receive 16.5 US cents per share.
Shares in SimiGon were 19% higher at 5.05 pence on Friday in London.
The acquisition is conditional on shareholder approval at a general meeting with is scheduled for February 18, after which SimiGon is scheduled to delist from AIM on March 22.
"This merger is an achievement for the company and its shareholders. The merger presents a compelling opportunity to achieve superior shareholder value and liquidity than SimiGon currently believes is possible as an independent company listed on AIM. SimiGon's software technology capabilities are expected to be leveraged to an additional new domain with significant market potential that far exceeds our current target markets," said Chair & Chief Executive Ami Vizer.
"Along with our current primary market of aviation-focused training and simulation, Maxify's adoption of SimiGon technologies will lead to the fully maximized value and capabilities of our software for the benefit of the company and its shareholders," Vizer added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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