Digital Power Corporation (NYSE: DPW) jumped in 2018’s first session after the company disclosed that its subsidiary, CooliSys Technologies Inc., agreed to acquire Enertec from Micronet Enertec Technologies Inc (NASDAQ: MICT) for $5.2 million in cash.
The deal, concerning Digital’s Coolisys Technologies, involves Coolisys paying Micronet $5,250,000 in cash upon closing (of which 10% will be held in escrow for up to 14 months after the Closing to satisfy certain potential indemnification claims) and assuming $4,000,000 in Enertec bank debt, paying effectively a total of $9,250,000 for all of Enertec's assets and liabilities. The transaction is scheduled to close the later of 60 days as of signing or 15 days after delivery of Enertec System's audited financial statements.
Micronet CEO David Lucatz says, "We are extremely excited to enter into this agreement, which strongly supports and fully aligns with our roadmap to increase the value of our Company by focusing all our resources on the MRM space.
“As the second phase of the Electronic Logging Device (ELD) mandate is now in effect, we believe 2018 will produce an even greater market demand, which we believe may increase the revenues and profitability of our MRM business in the coming years.”
Coolisys CEO Amos Kohn stated, “The purchase of Enertec marks a major step in continuing to execute our acquisition growth strategy into 2018 and beyond. We are very pleased that through this anticipated acquisition, we will realize an expansion of our customer base and benefit from Enertec’s innovative technology. Additionally, Coolisys will increase its manufacturing capacity and capabilities while improving its technical knowledge base.”
Shares in Digital advanced 17 cents, or 5.5%, to $3.38, while those in Micronet catapulted 34 cents, or 30.4%, to $1.46
