Wireless Matrix to sell assets to CalAmp Corp
TORONTO - Share in Wireless Matrix Corp. (TSX:WRX) are up more than 50 per cent a day after announcing it has reached a deal to sell its assets to another U.S.-based company for US$53 million in cash.
Wireless Matrix, a software and wireless data solutions company headquartered in Hendon, Va, said it has agreed to sell all of the shares of Wireless Matrix USA, Inc., a wholly owned subsidiary registered in Delaware to California-based CalAmp Corp.
This deal does not involve the sale of shares of the company, but 100 per cent of its assets, Wireless Matrix said. That would leave about US$51 million to distribute to shareholders as return of capital after accounting for transaction costs.
The purchase price represents about 63 cents per share, a 22 per cent premium above the one-month weighted average price of 52 cents.
On the Toronto Stock Exchange, Wireless Matrix shares were up 19 cents, or 54.29 per cent, at 54 cents in early afternoon trading Friday.
“We are very pleased to announce this agreement, which provides our shareholders with a significant cash premium for their shares," said Alex Washburn, chairman of the board of Wireless Matrix.