San Diego-based enterprise service desk software provider Peregrine Systems Inc is buying Innovative Tech Systems Inc of Warminster, Pennsylvania in a share swap. Peregrine says the deal will add extensive facilities management capabilities and remote data collection systems to Peregrine’s Infrastructure Management product line. Under terms of the deal, Innovative’s shareholders will receive 0.2341 shares of Peregrine stock for each of their shares in a deal that values Innovative at roughly $5.36 per share, or $76.6m. The merger has already been approved by the boards of both companies and awaits shareholder and regulatory approval. Peregrine expects to issue approximately 3.35 million shares in connection with the deal, which will make Innovative a wholly-owned subsidiary. The acquisition will be accounted for as a purchase and Peregrine expects to take a charge pretty much equal to the total purchase price. The deal should close during the quarter ending September 30, 1998.
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