By Lisa Kerner
Charlotte, N.C., Feb. 23 - KEG Holdings, Inc. entered into a definitive agreement to acquire Applied Innovation Inc. for $3.45 per share in cash.
Both companies' boards of directors have approved the proposed transaction, which includes a $1 million termination fee, according to an 8-K filed with the Securities and Exchange Commission.
Gerard B. Moersdorf, the founder and a director of Applied Innovation and the beneficial owner of 37% of Applied Innovation's outstanding shares, will also vote in favor of the merger.
The transaction is slated to close in the second quarter of 2007.
Applied Innovations is a Dublin, Ohio, network management solutions provider for distributed voice and data networks.
KEG Holdings is the parent company of Kentrox, LLC, a supplier of high-speed network access equipment.
| Acquirer: | KEG Holdings, Inc.
|
| Target: | Applied Innovation Inc.
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| Payment per share: | $3.45
|
| Termination fee: | $1 million
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| Announcement date: | Feb. 23
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| Expected closing: | Second quarter of 2007
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| Stock price for acquirer: | Nasdaq: AINN; $3.20 on Feb. 22
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