Digital x-ray developer Swissray International has signed a non-binding letter of intent to sell all of its outstanding capital stock to a U.S.-based private equity firm. The Elmsford, NY firm declined to release further details of the acquisition or reveal the name of the potential buyer.
Today's announcement wasn't unexpected. In February, Swissray and its controlling shareholder, Hillcrest Avenue, had engaged investment firm Houlihan Lokey Howard & Zukin Capital and indicated that it would explore "strategic alternatives."
The decision to pursue a sale was prompted by Hillcrest Avenue's decision to liquidate its investment in Swissray, VP of marketing Rex Harmon told AuntMinnie.com. The deal would also help Swissray's goal of transitioning to a more effective financing approach, Harmon said.
"We're shifting from a venture capital-backed company in a startup industry to an equity financing model, which will allow us to fund future growth and maintain and expand our market position," he said. "With equity financing, we can make long-term commitments and investments in products and infrastructure."
The letter of intent calls for a limited exclusivity period for further due diligence, agreement on the form and terms of the transaction, and a definitive contract, according to Swissray. During this period, Swissray and its major stockholders are prohibited from contacting or negotiating with other potential buyers.
By AuntMinnie.com staff writersSeptember 25, 2002
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Swissray increases presence in Eastern Europe, March 14, 2002
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