Sielox to Be Joined With Costar Video Systems Under Merger Agreement
The parent companies of Sielox, a provider of access control solutions, and Costar Video Systems, a provider of video and imaging products, have agreed to merge.
Dynabazaar Inc., which acquired Costar in June, has signed a definitive merger agreement with Sielox owner LQ Corp. Inc. The deal calls for LQ stockholders to receive 3.65 shares of Dynabazaar common stock for each share of LQ common stock. Upon completion of the merger, LQ stockholders will hold approximately 34 percent of the combined company, and Dynabazaar stockholders will hold approximately 66 percent.
In January 2006, LQ Corp. formed the Sielox subsidiary after purchasing the assets of Checkpoint Systems Inc.’s Access Control Products Group. Sebastian (Sam) Cassetta, president and CEO of LQ, will become president and CEO of the combined company, following completion of the merger.
“The combination of Dynabazaar and LQ should create a number of synergies between the operating units of each company, as well as deliver meaningful cost savings at the corporate level, making the combined company a stronger player in the security industry,” Cassetta says.
The Boards of Directors of both Dynabazaar and LQ have approved the merger agreement. The transaction is subject to stockholder and regulatory approval and is expected to be completed during the first half of 2007. Upon completion of the merger, the combined company shares are expected to trade on the OTC Bulletin Board under Dynabazaar’s current “FAIM.OB” symbol.
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