Arlington, Texas-based Technology Development Corp has completed the acquisition of two ComputerLand Corp franchises and begun operating five fomer Nynex Business Centre locations in Texas as part of its ComputerLand computer reseller operations: the $4m acquisition of Techtron Corp and its subsidiary, BradyTech Corp, adds the Houston and San Antonio ComputerLand franchises to the Technology Development group, the purchase was paid in a combination of cash and shares of preferred stock of a holding company, paying a current dividend of 6% and 2%; holders of the new preferred stock have the right to exchange their shares of Technology Development common stock at $4 per share; the exercise of all of the exchange rights and options should result in the issue of some 630,000 new shares of Technology Development common stock, and slightly more than 2m of common stock are currently outstanding; financing up to $3.4m was raised for the acquisition, approximately $900,000 of which was used to refinance existing debt and equity previously financed by ComputerLand Corp, and $1m was provided as additional working capital; principal debt is convertible into a controlling interest in the common stock of the Technology Development subsidiary in the event of a default, and ComputerLand has an option to purchase all of the Technology Development-owned Texas franchises in the future for a price based on the financial performance of combined operations.
