Itronix Parent Bought By Top Employees
Dynatech Corp. said Monday a group of its executives and top employees and the investment firm Clayton, Dubilier & Rice Inc. will acquire the telecommunications electronics company for $49 a share, or about $900 million.
The company expects the agreement to be completed in the first half of 1998.
The Burlington, Mass.-based firm is the parent company of Spokane’s Itronix Corp., which employs 370. Dynatech acquired Itronix in January as part of a $65 million deal.
“We see this as an extremely positive move,” said Itronix President and CEO Steve Gervurtz, adding that he doesn’t anticipate any direct local impact.
The buyout will give Dynatech time to get back on track after reporting disappointing sales in its fiscal second quarter ended Sept. 30, analysts said.
About 300 Dynatech employees will own a 25 percent fully diluted stake, with the investment firm holding about 70 percent.
Dynatech makes testing equipment used to install and maintain phone and data networks, as well as damage-resistant portable computers used by technicians doing field repairs.
Itronix, which was founded in 1989 as a unit of Spokane-based Itron, specializes in making rugged, hand-held field computers.
New York-based Clayton Dubilier manages $1.5 billion for public and private investors.
Shares of Dynatech rose 10-3/16 Monday to 46-15/16 in late trading of 2.56 million, more than 24 times its three-month daily average.