NEW YORK, Jan. 10 (UPI) -- API Technologies Corp. of New York is merging with SenDEC Corp., broadening its range of defense electronics systems.
Under the definitive merger agreement with Vintage Capital Management LLC, API will acquire 100 percent equity of SenDEC for $30 million in cash in exchange for the issuance of 22 million API common shares to an affiliate of Vintage.
"With this merger, API gets to both combine with SenDEC, one of the leading defense suppliers in the U.S., and partner with Vintage Capital, one of the pre-eminent defense investors in the market," said Phillip DeZwirek, founder, chairman and chief executive officer of API Technologies. "The new company and its combined capabilities are worth much more than the sum of the parts."
API said it intends to pay down its existing debt with the $30 million of cash acquired in this transaction and emerge with net cash on its balance sheet.
SenDEC's merger with API effectively doubles the size of the company and presents a variety of immediate revenue synergies and growth opportunities in the defense sector. Once the transaction is closed, the company will immediately pursue a listing on NASDAQ.
API intends to pay down its existing debt with the $30 million of cash acquired in this transaction and emerge with net cash on its balance sheet.
