Hartcourt to Acquire Samsung Printer Distributor GW Digital
jan
2006 – The Hartcourt Co. Inc. has signed a preliminary agreement to
acquire GW Digital, a privately held Samsung printer distributor
serving the needs of consumers and businesses in Eastern China,
covering a region of six provinces and the city of Shanghai.
Hartcourt
is anticipating a closing date for the transaction in the middle of
Feb. 2006. Following the inking of the deal, GW Digital will operate as
a 51% owned, indirect subsidiary of Hartcourt.
The all stock
purchase price will be US$1.5 million, subject to customary closing
adjustments. The purchase price represents approximately 0.6 times of
2005 GW Digital’s net assets. Hartcourt anticipates the GW Digital
acquisition will increase its fiscal 2006 (year ending May 31)
operating income by US$300,000.