Applications software development and software consulting services are to become a minority activity at Laurence Harbor, New Jersey-based Convergent Solutions Inc, which started out developing applications for networked desktop systems made by the former Convergent Technologies Inc, if a proposed reverse takeover goes through. The quoted Convergent Solutions has signed a letter of intent to acquire privately-held KTI Environmental Group Inc, a holding company with interests in two waste-to-energy projects in Maine that convert solid waste into electricity that is sold to public utilities, and in a facility in Maine that processes waste wood such as telegraph poles, railway sleepers and construction into wood chips for burning by generators to produce electricity. KTI also leases tractors and trailers to a trucking company in New Jersey that hauls away and disposes of municipal and other waste, and plans to diversify further by acquiring the company. After the proposed transaction, KTI holders will have 60% of the enlarged company, and that could rise to 67% on an earn-out pact requiring the pre-tax profit of the KTI businesses to be at least $3m in each of 1994 and 1995, and to aggregate to at least $8m over the two years.
