EMRISE Completes Sale of Subsidiary, A Xerox Company Makes Acquisition
By Market News Video Staff, Wednesday, September 1, 11:46 AM ET
EMRISE Corp. (ERI) has completed the sale of its Advanced Control Components subsidiary to Aeroflex for $20 million in an all cash transaction, subject to a working capital adjustment.
At closing Emrise received net proceeds, after closing costs, of $17.3 million. EMRISE used $12.7 million of the net proceeds to pay off all but $3.8 million of approximately $16.5 million in total debt owed to its principal lender and the former ACC shareholders. The Company also deposited $800,000 in a 12-month escrow account in the event of any warranty claims or disputes arising from the sale of ACC that may subsequently occur between EMRISE and Aeroflex.
At the end of the escrow period any unused funds in the account will be returned to EMRISE.
Also today, Global Imaging Systems, a Xerox company (NYSE:XRX), has acquired Georgia Duplicating Products of Macon, Georgia.
Established in 1977, Georgia Duplicating Products is one of the state’s largest independent office equipment dealers, with offices in Macon and Atlanta. Georgia Duplicating is positioned to immediately begin offering Xerox’s full range of office printing products.
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