Networking products manufacturer Asante Technologies Inc. has announced plans to be acquired by an investor group headed up by one of its former vice presidents of sales and marketing, James L. Volkmar. Oblique Inc. plans to acquire the company in a transaction valued at US$5.12 million.
Under the terms of the agreement, Asante stockholders would receive $0.50 in cash per share; shares of the networking products maker closed at $0.20 the day this acquisition was announced. Asante's stock will be delisted from the Nasdaq OTC Bulletin Board accordingly.
Asante CEO Wilson Wong said that the acquisition by Oblique would give the company added resources to help increase market awareness and improve business opportunities. James Volkmar added that Oblique Inc.'s vision of Asante "relies heavily on a strong computer channel of resellers, VARS and integrators to widen awareness of Asante products among small-to medium-sized businesses."
The merger, subject to regulatory and shareholder approval, is scheduled to close in the third or early fourth calendar quarter of 2003.
This story, "Asante to be acquired by investor group" was originally published by PCWorld.