DPAC Technologies merging with QuaTech
Garden Grove, CA; Husdon, OH—DPAC Technologies Corp. and QuaTech Inc. report that they’ve agreed to merge on a stock-for-stock basis. QuaTech will become a wholly owned subsidiary of DPAC.
DPAC will exchange newly issued shares of its common stock for privately-held QuaTech's shares. The merger is subject to certain conditions, including approval of DPAC's shareholders, the raising of an additional $4-5 million in new financing, and the absence of material adverse changes. The companies expect to file an S-4 registration statement, seek DPAC shareholder approval, and secure appropriate financing during the next eight to 12 weeks.
Their agreement calls for QuaTech's shareholders and stakeholders to DPAC’s shares equal to 150% of DPAC's partially diluted shares, which are those presently outstanding plus those issued under outstanding options and warrants on a net-exercise basis.
The newly merged company will have a new seven-member board with three inside directors and four independent members. The merged company management will be led by Kim Early, DPAC’s CEO, as chairman, and Steven Runkel, QuaTech’s CEO, as CEO. DPAC provides embedded wireless networking and connectivity products for machine-to-machine communication applications.
DPAC's wireless products are used by OEMs in the transportation, instrumentation and industrial control, homeland security, medical diagnostics and logistics markets to provide remote data collection and control.
QuaTech manufactures device networking and connectivity solutions. Through design, manufacturing and support, QuaTech maintains reliability and performance. Users include OEMs, VARs, and system integrators, as well as end-users in many industries, including banking, retail/POS, access control, building automation and security, and energy management.
Control Engineering Daily News Desk
Jim Montague, news editor