Electronics Production | June 18, 2008
Visonic agreed to sell business unit Visonic Technologies
Visonic has signed a non-binding term sheet with an international company, for the sale of its Location Tracking Systems business, Visonic Technologies.
It is intended that as part of the consideration, the Buyer will assume and fully release Visonic from bank guarantees for VT’s borrowings and that the Buyer will repay to Visonic in instalments the net inter-company amount owed by VT to Visonic. In addition, it has been agreed that at the closing of the transaction Visonic and VT will execute a supply agreement pursuant to which Visonic will continue to manufacture for VT certain products. This supply agreement will be valid from the transaction date, for a period of 36 months thereafter. A binding agreement, following legal and financial due diligence by the Buyer, is expected to be negotiated and signed during the third quarter of 2008, at which point a further announcement will be made.