DALLAS-Mizar Inc. and Loughborough Sound Images Ltd., both suppliers of computing products for the real-time signal and image processing markets, signed a definitive merger agreement.
According to the proposed agreement, Loughborough stockholders will gain about 60 percent of Mizar. The transaction will be accounted for as a pooling-of-interests, and the companies said they expect the arrangement to be tax free to both companies.
At Mizar’s current share price of $6.12 per share, the combined company would be valued at about $80 million, said the companies.
A name for the new entity has not yet been determined.
“The potential synergies of this marriage are extraordinary,” said Sam Smith, Mizar’s chairman and interim chief executive officer. “Mizar sees an attractive market for its defense-oriented [digital signal processing] products in Europe and will be able to leverage LSI’s outstanding sales capability throughout Europe.
“Conversely, LSI sees a strong market for its products in North America and will gain access to Mizar’s considerable direct selling capability in North America,” noted Smith.
Mizar develops and markets DSP computers, primarily to the defense industry. Loughborough has similar operations with a focus on private industries, including telecommunications.
Its embedded computer product line includes DSPs produced by Texas Instruments Inc., Motorola Inc. and Lucent Technologies Inc.
