Printer Friendly

GENERAL KINETICS AND VERDIX CORPORATION ANNOUNCE AGREEMENT

 HERNDON, Va., Oct. 1 /PRNewswire/ -- General Kinetics Incorporated (AMEX: GKI) (GKI) and Verdix Corporation (NASDAQ: VRDX) (VERDIX) today announced that they have reached an agreement for GKI to acquire the assets of the Secure Products Division of Verdix. Under the agreement, the Division would be acquired for a purchase price consisting of i) $1,000,000 of which $750,000 would be payable in cash at closing and the balance in quarterly installments over 18 months commencing in March 1994 and ii) potential revenue sharing on certain future sales. Completion of the transaction, which is expected to occur in late October, is subject to several conditions, including the financing of the acquisition through the completion of a private placement of GKI securities.
 The Secure Products Division develops and markets security products, including Secure Local Area Network (VSLAN) systems, designed to protect information from unauthorized access by electronically securing different levels of data on a single network. The Division's employees will be integrated into the Secure Communications Division of GKI.
 Ralph Alexander, president and CEO of Verdix commented, "This transaction would complete the plan we announced at the end of our last fiscal year to find a purchaser for our Secure Products Division. The sale will enable Verdix to concentrate on its main product lines and better serve its software development tools market."
 David A. Shaw, president and CEO of General Kinetics stated, "This acquisition of the Secure Products Division will enable GKI to compliment its secure communications hardware product offerings with a secure local network. This is the next step in our plan to become a major player in secure communications for both domestic and international markets. The new combined Secure Communications Division is expected to introduce new lower cost products for commercial markets early next year, to be followed by other secure communications products in the future."
 General Kinetics Incorporated, is a designer, producer and marketer of high-end, digital secure facsimile equipment, plastic sorting and food testing equipment and precision enclosures headquartered in Rockville, Md., currently trading on the AMEX, symbol GKI. Verdix Corporation, is a leading supplier of software engineering tools, primarily for the Ada language, headquartered in Herndon, currently trading on NASDAQ, symbol: VRDX.
 -0- 10/1/93
 /CONTACT: David A. Shaw, president - CEO of General Kinetics Incorporated, 301-881-2044/
 (GKI VRDX)


CO: General Kinetics Incorporated; Verdix Corporation ST: Virginia, Maryland IN: CPR SU: TNM

LD -- NY098 -- 8020 10/01/93 20:51 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 1, 1993
Words:406
Previous Article:BIOMIRA INC. DISCUSSES PRELIMINARY OBSERVATIONS IN PHASE II CLINICAL TRIALS USING THERATOPE(R) STnKLH AT SCIENTIFIC PRESENTATION
Next Article:CARAUSTAR INDUSTRIES SIGNS DEFINITIVE AGREEMENT TO ACQUIRE FEDERAL PACKAGING CORPORATION
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters