NEMATRON CORPORATION TO ACQUIRE INDUSTRIAL COMPUTER PRODUCTS FROM ACTION INSTRUMENTS, INC.
ANN ARBOR, Mich., Sept. 16 /PRNewswire/ -- Nematron Corporation (OTC Bulletin Board: NEMA.U) announced today that it has signed a non- binding letter of intent with San Diego-based Action Instruments, Inc. to acquire Action's Industrial Computer Products assets. Nematron pioneered the Industrial Workstation market with products which integrate a video display and keyboard with a variety of industrial computer architectures for plant floor operator interface, monitoring and control. Action Instruments is a leading supplier of instrumentation and signal processing products for manufacturing and industrial processing applications. Action pioneered the design of IBM AT compatible industrial computers as stand-alone systems without video displays. Nematron intends to use the acquisition to increase its market share, increase manufacturing, engineering and administrative economies of scale, and to strengthen its ability to sell and compete more effectively in its segments of the factory automation market. Action Instruments intends to focus its engineering, selling and marketing efforts on its instrumentation and signal processing products, which are its core products and technology. This acquisition is expected to contribute critical mass and incremental revenues for Nematron so that renewed investments can be made in sales and marketing for both the industrial workstation and industrial computer segments, while near term profitability can be measurably improved. Nematron plans to maintain strong support of Action's industrial computer sales channels, customers and products. The companies intend to complete the transaction, subject to negotiation of a definitive agreement and approval by their respective boards of directors, within 60 days. Nematron is exchanging approximately 10 percent of its stock for fixed assets and product rights, plus cash and a subordinated convertible note, for Action's Industrial Computer Products inventory. The acquisition, if consummated, is projected to add over $2.5 million in revenues for Nematron in the first year. Nematron is a publicly traded company headquartered in Ann Arbor, which trades under the symbol NEMA.U on the OTC Bulletin Board. -0- 9/16/93 /CONTACT: Paul Horst, president of Nematron, 313-994-0501/ (NEMA)
CO: Nematron Corporation; Action Instruments, Inc. ST: Michigan, California IN: CPR SU: TNM
SM -- DE005 -- 2550 09/16/93 08:32 EDT
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|Date:||Sep 16, 1993|
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