Medical imaging technology manufacturer Colorado MedTech has entered into an agreement to sell the firm to CIVCO Holding, an entity controlled by KRG Capital Partners of Denver. Under the terms of the agreement, a subsidiary of CIVCO Holding will be merged into Colorado MedTech, with the Boulder, CO-based firm continuing as a private corporation.
Shareholders of the company will receive cash for each share of common stock that they own, equal to $62.5 million in the aggregate plus the company’s cash (net of any remaining liabilities) at the time of closing, divided by the number of shares outstanding (currently approximately 13,300,000), according to the firm.
Based on this formula, Colorado MedTech estimates that the closing proceeds to be paid to shareholders will be in the range of $4.50-$5 per share. The transaction, which is subject to shareholder approval and customary closing conditions, is expected to close by June 30, 2003.
By AuntMinnie.com staff writers
March 13, 2003
Related Reading
Colorado MedTech sells Colorado operations, January 27, 2003
Colorado MedTech trims loss despite sales dip, November 12, 2002
Colorado MedTech to explore sale options, September 26, 2002
Colorado MedTech shows profitable Q4, August 20, 2002
Colorado MedTech, Cerner team up, August 16, 2002
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