Innovonics sells out to US for $33m

Stan Beer
Sunday, 18 September 2005 10:11

IT Industry - Listed Tech

Mobile security camera developer Innovonics Limited (ASX:INO) has recommended shareholders accept a $33 million take-over bid by a US-based competitor.

The proposal from North Carolina company Integrian involves a recommended off-market takeover offer for all of the issued ordinary shares in Innovonics at a cash price of 82c per share, amost double what the company has been trading at.

Melbourne-based Innovonics has recently won a spate of multi-million dollar contracts to install digital security cameras and software on train systems in Australia, the UK, US and EU. The attention of Integrian was aroused when it was beaten recently by Innovonics for a $2 million US contract to put cameras on 2500 New Jersey buses.

The directors of tightly held Innovonics have unanimously recommended that Innovonics shareholders accept Integrian's bid in the absence of a superior offer. Each of the directors intend to accept the bid for all of the shares that they own or control, in the absence of a superior offer.

The price of 82c per share represents a premium of more than 90% to the volume weighted average price of Innovonics shares on the ASX for the 1 month to the close of trading on 13 September 2005 of approximately 42c.

Integrian is a developer and manufacturer of mobile digital video recorders to capture high quality video in rugged, mobile environments and tag, transmit, archive and search video files for various security and law enforcement purposes. The company is a direct competitor to Innovonics, which it obviously believes has superior technology.

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