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Technology / AI and automation

MASSACHUSETTS COMPUTER STARTS TENDER OFFER FOR CONCURRENT

Massachusetts Computer Corp has now started its tender offer for all the shares of Concurrent Computer Corp at $20 per share and given a few more details of its plans for the combination following completion of the operation: Concurrent will merge into Masscomp and change its name to Concurrent Computer Corp with headquarters in Tinton Falls, New Jersey; manufacturing operations will be combined at the New Jersey and Cork, Ireland plants of Concurrent, with Masscomp’s manufacturing facility in Westford being closed down at the end of December 1988, although engineering and some marketing and support operations will stay in Massachusetts; Masscomp expects as a result to report a one time charge to earnings of approximately $8m for the quarter and fiscal year ending July 2, 1988, details of which will be reported this Friday, August 12; financing is coming from a $75m senior loan facility from a group of banks led by Bank of New England, and Drexel Burnham Lambert is acting as placement agent for $100m of subordinated debt financing – junk bonds – and the principal shareholders of Masscomp, Greylock Investments, Hambrecht & Quist Venture Partners and J H Whitney & Co, will buy $10m of Masscomp common at approximately $3.85 per share; and as part of the subordinated debt financing, Masscomp will issue warrants representing 15% of the fully diluted outstanding shares for use in employee stock option programmes to run over the next five years.

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CBR Staff Writer

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